Airline lobbyists are celebrating today as a key Biden-era consumer-protection rule has been dropped by the Trump Department of Transportation.
Trump Administration Shelves Airline Cash Compensation Rule For Delays And Cancellations
Plans for cash compensation in the USA for airline delays and cancellations, much like in Canada, the European Union, and the United Kingdom, will not go into effect.
The Rule That Almost Was…
In May 2023, the U.S. Department of Transportation announced plans to require airlines to compensate passengers and cover expenses for controllable delays and cancellations. As Secretary Pete Buttigieg put it:
“When an airline causes a flight cancellation or delay, passengers should not foot the bill…
“Americans know the importance of a robust airline industry, which is why this country—and U.S. taxpayers — kept U.S. airlines afloat when the COVID pandemic threatened their very existence. Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel—where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”
DOT then advanced the effort in December 2024 with an Advance Notice of Proposed Rulemaking that sought comment on a tiered cash compensation framework for airline-caused disruptions, plus free rebooking, meals, lodging, and local transportation. The contemplated tiers were broadly $200–$300 for 3–6 hour domestic delays, $375–$525 for 6–9 hours, and $750–$775 for 9+ hours, with comparable protections on international itineraries.
Separately, in April 2024 DOT finalized automatic refunds for cancellations, significant schedule changes, delayed checked bags, and paid ancillaries not delivered. That refund rule took effect on a staggered schedule and is distinct from the compensation proposal.
Trump Administration Explains The Reversal
On September 4, 2025, the administration confirmed the compensation proposal will be withdrawn. A DOT spokesperson said the department would focus on enforcing protections that Congress has mandated while reconsidering rules that went beyond statutory requirements. As stated:
“We will faithfully implement all aviation consumer protection requirements mandated by Congress, including the requirement to refund ticket prices to passengers in the case of airline canceled or substantially delayed flights when consumers choose not to travel. Some of the rules proposed or adopted by the previous administration, however, went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
Industry groups opposed to mandatory payouts argue that the compensation scheme would impose costs and complexity without fixing operational problems. Consumer advocates counter that mandatory compensation deters avoidable delays and provides predictable care when disruptions occur.
EU261/UK261 Shows Consumer Protections Work
Europe’s passenger rights regime has required cash compensation since 2005, typically €250–€600 based on distance, along with care and assistance. UK261 mirrors these protections post-Brexit. Courts have limited the “extraordinary circumstances” defense so routine technical faults usually do not excuse payment. Evidence cited by Biden DOT indicated compensation rules in Europe have reduced the likelihood and duration of delays. Airfares remain competitive and carriers have not compromised safety under these regimes. In practice, the rules protect consumers without crashing the system. Look no further than airfare pricing and availbality within Europe…
What This Means For U.S. Travelers
This change in policy cancels a proposed rule that had not gone into effect, but does not change existing regulations.
- Automatic refunds remain in place under existing rules when you are owed a refund.
- No federal cash compensation is guaranteed for airline-caused delays and cancellations within the U.S. unless a carrier voluntarily offers it in its plan.
- On itineraries covered by EU261 or UK261, those regimes still apply when eligible, even if your carrier is U.S.-based (practically, that only applies to U.S. carriers when originating in the EU or UK)
I’m very hopeful (though not optimistic) that existing rules will continue to be enforced, even as the airline industry lobbies the administration heavily to cut back on consumer protections that help to hold airlines accountable. The idea that these regulations somehow compromise safety or are bad for consumers is not supported by evidence.
CONCLUSION
The Trump administration will not carry forward the Biden-era cash compensation plan for delayed or cancelled flights. Refund rights continue, but the United States remains well behind Europe on guaranteed compensation and care when airlines cause major disruptions. But who has time for consumer protections when the Department of Defense has to be changed to the Department of War to protect the Gulf of America, and de minimis tariffs have to be collected such that many foreign postal services are now refusing to send packages to the USA? #priorities
Good move, we the consumer would have just paid for it in higher costs. No way the airlines were eating the handouts to customers. No business ever does, they just pass it on.
As for “avoidable delays”, what percentage do you feel fall into this category? I just don’t see this as fixing much of anything for consumers.
Not to be crass, but you love to bend over and take it, don’t you?
Hes willing to bend over and take anything as long as a liberal is harmed.
Airlines are already charging as much as they can without harming demand. This wasn’t going to have a noticeable impact on pricing
Ha! Appreciate you getting in on the bashing of homos, understanding it’s a negative to take it in the a$$.
But no, I’m just against this because it solves nothing and would be paid by the consumer. Not sure how you can think otherwise. There is no magical fund the airlines have to pay these crazy amounts.
Why would someone get $200-$300 for a 3 hour delay? Happens daily at every major airport in America. Thinking these expenses won’t be passed on is just naive.
I meant rape.
That’s unusually vulgar for you Matthew
and somehow Europe does it with lower airfare prices.
This is very cucked. Let the airlines off the hook for delaying your trip? And liking it? That’s bad, man.
Trump and Biden are both wrong.
Trump is wrong for dropping protection.
Biden is wrong for allowing the airlines to get out of trouble by refunding the ticket in case of severe delay or if the alternative is in a few days. That could strand passengers.
A better way would require airlines to put you on another airline if delayed for any reason, even weather. The incentive for the airline not to do this is they would have to pay other airlines if they can’t keep a schedule.
True, Delta would soak Spirit to provide seats but Spirit could do the same.
THIS!
I have acquaintances that fly sh#t airlines often and they have told me about this multiple times. Allegiant just cancels flights, gives the customer a refund and screws them. Leaving them stuck with the only option to book a last minute high priced ticket or cancel their plans.
But hey, they got a refund.
You do realize that included in the new regulations that the Trump administration cancelled was a provision that would not have allowed Allegiant simply to refund, but forced it to rebook displaced passengers on an interline partner to their destination?
Honestly no I didn’t. But that’s another potential provision that would have cost the consumer more money.
What exactly was Allegiant going to do in these small airports they serve where they are the only airline? Using the example of PIE, would they be forced to send customers to TPA? This seems like it would put them out of business or require them to drastically raise rates, which again might put them out of business.
Yes it might require them to become more efficient but again, at an increased cost to the consumer. The refunds might suck, but it’s allowed them to operate their model. But we can debate if that model is even needed. I say for a segment of the population, they serve a purpose as does Spirit. Which obviously isn’t working financially.
I certainly don’t have the answers but I also know anything that costs airlines, or any business, more gets passed on to the consumer.
You just said it was a good idea until you found out that Biden’s rule provided for it. Now its too expensive. Have some shame, man
“Socialism for me, but for thee” is the Trumpian way. The fake populist. I don’t understand anyone who supports this change. It costs consumers nothing, all it allowed was for them to get a refund!
Are our grocery prices down yet???
Just wanted to chime in on your comment “Are our grocery prices down yet???”. Here is a good article that uses principles of Economics (not politics) to show how it is very unlikely grocery prices will come down so hold your expectations.
https://www.pbs.org/newshour/politics/food-prices-worried-most-voters-but-they-likely-wont-see-lower-grocery-bills-under-trump
I have been working in the food industry for decades so I kid of understand how the industry works. Keep in mind that there are different players in the food supply chain, so although you may expect prices going down on commodities, fruits, vegetables, eggs, milk, forget about prices coming down on “processed foods”. There is very little incentive for a manufacturer of a branded product to bring prices down when people are still buying their products at higher prices. That is the basic of supply/demand so if you saw your favorite cookie, cereal chocolate brand increase its price by 40% and you are still buying it, do not expect them to simply reduce the price because they might get their raw materials at a cheaper price but they will see this as an opportunity to increase their margins. The only way for these prices to come down is for consumers to speak with their wallets and stop buying it so the manufacturer will see a steep decline in sales and will adjust prices accordingly.
That comment was sarcastic and to ridicule trump supporters.
I’ve worked in product brands my entire career and understand far more deeply how costs and volatility affect pricing.
Trumps actions and presidency will have a permanent negative impact on the US, our middle class, and standing in the world. We will get what we deserve for voting this man in and allowing him to rip up the constitution piece by piece.
You just forgot to say that prices didn’t get to where they are now under his Administration.
Just something interesting to call out on how our Government, no matter which party is in control, is absolutely inefficient and bureaucratic.
As per the above, “In May 2023, the U.S. Department of Transportation announced plans to require airlines to compensate passengers and cover expenses for controllable delays and cancellations.” That means that Administration had 19 months to get the “plans” approved but we changed Administration and it was still a “plan”.
Now, forget about compensation but there is something way worse happening with airlines in the US and maybe @Matthew can chime in on the reasons behind. In Europe, you have EU261/UK261 but it is still way cheaper to fly within Europe than it is to fly within the US at least from my own experience. If you read the main reason why US airlines were against the compensation here was that it would increase the price for flights. That is disgusting.
If only these rules were applied to public transportation as well.
Imagine how broke the MTA in New York would be?
Obviously it wouldn’t do anything to improve service, but it would increase the burden on taxpayers most of whom don’t even take public transportation.
But yes, the airlines are easy to pick on because they are for profit entities operating almost entirely in municipal environments.
Has anyone been held accountable for moving the work from Westbury to Philly?
I didn’t think so.
What have we learned? Be the first to drag a bag of cash ( inaugural donation ? ) to the most corrupt administration to get away with erasing pesky things you don’t like. Going through the process thoughtfully and legislating reasonably to incubate fair regs and you are blamed for ” being too slow ” and are given the golden shaft.
Lies and false promises dominate. Wait until we see how much of the budget for FAA will be funded. I fear more bad news.
The underlying economics is simple. If my cell phone fails after the first two years (your phone may vary), at no fault of mine, I have to pay to fix it or replace it. I can buy insurance to protect it. If the federal government required the coverage to be, say, 8 years, the cost of 6 years of insurance (discounted for time) would be added to the initial phone price. Nothing is different here. My $400 airfare would be X% higher if I gained 261-like protections. It is possible the X will be small enough, I would think it a good deal. My fear is that it would be more like I’d be forced to buy an extended warranty on a TV. Plus, there is moral hazard here. Will I book the 35 minute CLT connection today? No. Might I if AA would have to give me $s if I missed the connection? Maybe. Also, would AA change up the minimum connection times to avoid paying out $s. There certainly are predictable pricing and scheduling behaviors here.
A service ( flight ) is not a tangible product ( phone ) . Poor comparison. If the service cannot be delivered in a timely manner, the consumer should not have to absorb the costs incurred by the carrier failure. This has been working for 20 years elsewhere. It reinforces accountability in a timely manner.
Keep paying MAGA. You own this.
What a terrible decision for passengers. This is depressing to read about.
Let none of you losers say I blindly follow Trump, because although I love the guy, this is a bad decision. Those protections should be in place, particularly for those less reputable airlines out there (Insofar as an airline could even be considered reputable)
I knew there was a reason I have respected you.
This.
Last year, BA stranded me and my family of 3 in London for 3 days due to a misconnect caused by a mechanical issue. I purposely chose a 3 hour layover but that wasn’t sufficient in this particular instance. It took us 8 hours to retrieve our baggage which was in 2 terminals (not sure why). Despite having a lot of flights from LHR-USA, they were only able to find space for my family on day 3. Crazy!
While BA reimbursed me for the cost of hotel, transportation, meals etc., I missed work, appointments etc. which cost real money. I was able to use UK261 to get partial compensation for my woes. Wish the US had something similar.
We need the CAB and rule 24o back. Deregulation killed that.
@Anonymous — I am often of the mindset of, “less is more with regulation.” However, I 100% agree with you on Rule 240. And… definitely there are aspects of CAB which were beneficial as well.