The Trump administration is ditching plans to compensate United States passengers affected by airline cancellations and delays, meaning American travellers whose air journeys are disrupted will continue to have fewer consumer rights than their counterparts around the world.
Former US president Joe Biden had attempted to bring the US Department of Transport (DOT) policy in line with consumer protections for air passengers in Brazil, Canada, the European Union, and the UK, where cash compensation for flight disruptions caused by airlines is mandatory.
Under the plan, US carriers would have been obliged to go beyond the assistance they currently provide to passengers. They already undertake to offer refunds or rebookings for cancelled flights, as well as issuing vouchers for accommodation, meals, and other expenses ensuing from major disruptions under their control; however, passengers must usually take the initiative in asking for this discretionary help.
Addressing this situation, the intended regulations would have specified obligatory compensation amounts, ranging from $200 (around €170) for significant delays due to mechanical or technical failures within airline control, to $775 (around €660) for delays of nine hours or more. But the proposal, made in November 2024, languished unimplemented for 10 months.
If an airline cancels or significantly delays your flight and it's their fault, you may be entitled to fair compensation. We've asked airlines to deliver better customer service and we're seeing results. Learn more at https://t.co/EHOVpjmR22. pic.twitter.com/GAPdwxUDqu
— U.S. Department of Transportation (@USDOT) December 24, 2023
Now, according to a DOT ruling published on the Office of Information and Regulatory Affairs website, the idea is being abandoned. The decision is “consistent with Department and administration priorities,” the announcement says. Those priorities include cutting back on all programmes and legislation perceived as overreaching or too costly by Trump and his officials.
Aviation sector stakeholders had been deeply critical of the proposed consumer protection scheme, and had claimed the increase in operational costs would need to be passed on to customers. Spirit Airlines, a carrier seeking bankruptcy protection, said: “There is no free lunch,” and argued that the rule change would create “a perverse incentive to cancel flights pre-emptively at any hint of trouble.”
Here is the posting on @USDOT withdrawing ANPRM on cash compensation for airline-caused delays https://t.co/yyosbfPWil pic.twitter.com/NL3K6HOmua
— David Shepardson (@davidshepardson) September 4, 2025
Trade body, Airlines for America, which represents several major US carriers, has welcomed the U-turn. “We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers,” the lobbying association said.
Meanwhile, other consumer protections put forward under Biden, such as rules forcing airlines to declare junk fees and hidden costs before the point of purchase, have been frozen after a court challenge, and the DOT said on 4 September, are also now being considered for rollback or repeal.
