U.S. Moves to Scrap Airline Delay Compensation Rules

The U.S. Department of Transportation (DOT) is preparing to withdraw a proposed regulation that would have required airlines to compensate passengers for lengthy domestic flight delays. Drafted in December 2024 under the Biden administration, the rule would have mandated payouts of between USD200 and USD775 for delays of more than three hours when attributable to the airline.

In a new filing, the DOT said dropping the proposal is “consistent with department and administration priorities.” Under the original plan, passengers delayed six to nine hours would have received USD375 to USD525, while those delayed nine hours or longer would have been entitled to USD750 to USD775. Airlines would have been liable only when at fault for the disruption.

Trade group Airlines for America welcomed the move, telling Bloomberg it was encouraged by the DOT’s review of “unnecessary and burdensome regulations” that exceed the agency’s authority and “don’t solve issues important to our customers.”

Instead, the DOT under the current Trump administration says it will focus on implementing aviation consumer protections explicitly required by Congress. A department representative noted that some rules proposed or adopted by the previous administration “went beyond what Congress has required by statute,” and the agency intends to reconsider those extra-statutory requirements.

The decision marks a significant shift in federal oversight of airline passenger rights and highlights the policy divide over how far regulators should go to mandate compensation for travel disruptions in the U.S. air transport market.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com