Trump admin to drop Biden-era rule requiring airlines to pay passengers for flight delays
In December, the US Department of Transportation under Biden had sought public comment on whether airlines should be required to pay between $200 and $300 for domestic delays of at least three hours, and up to $775 for longer delays
- Sep 5, 2025,
- Updated Sep 5, 2025 3:19 PM IST
The Trump administration on Thursday announced it would abandon a plan initiated under former President Joe Biden to require US airlines to pay passengers cash compensation for flight delays, marking a setback for aviation consumer advocates.
In December, the US Department of Transportation under Biden had sought public comment on whether airlines should be required to pay between $200 and $300 for domestic delays of at least three hours, and up to $775 for longer delays. US carriers had sharply criticised the proposal, originally unveiled in May 2023.
The White House said in a document posted Thursday that the Transportation Department plans to withdraw the notice “consistent with department and administration priorities.”
Currently, US airlines are required to refund passengers for cancelled flights but are not mandated to compensate for delays, unlike the European Union, Canada, Brazil, and Britain, which have established airline delay compensation rules.
Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines, and others, welcomed the decision. “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 group said. It also warned that Biden’s cash compensation plan would have raised ticket prices.
However, former Biden economic adviser Bharat Ramamurti criticised the reversal, saying the rule “would not only have put real cash back in your hands for badly delayed or cancelled flights, but would have resulted in far fewer delayed and cancelled flights in the first place.”
Major US carriers in 2022 had committed to paying for meals, hotel stays, and other expenses when they caused significant flight disruptions.
The Transportation Department also indicated it is considering rescinding a separate Biden-era regulation from April 2024, which required airlines and ticket agents to disclose service fees alongside airfares to help consumers avoid unexpected costs. That rule had been put on hold by a court pending legal challenges.
In addition, the department plans to reduce regulatory burdens by clarifying the definition of a flight cancellation that entitles passengers to refunds and revisiting rules on ticket pricing and advertising. A spokesperson for Transportation Secretary Sean Duffy said the department “will faithfully implement all aviation consumer protection requirements mandated by Congress” but added that some Biden-era rules “went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
The Trump administration has also taken other steps to reverse Biden’s airline consumer initiatives. In May, the Justice Department dropped a lawsuit against Southwest Airlines filed by the Biden administration, which had accused the carrier of illegally operating chronically delayed flights.
The Trump administration on Thursday announced it would abandon a plan initiated under former President Joe Biden to require US airlines to pay passengers cash compensation for flight delays, marking a setback for aviation consumer advocates.
In December, the US Department of Transportation under Biden had sought public comment on whether airlines should be required to pay between $200 and $300 for domestic delays of at least three hours, and up to $775 for longer delays. US carriers had sharply criticised the proposal, originally unveiled in May 2023.
The White House said in a document posted Thursday that the Transportation Department plans to withdraw the notice “consistent with department and administration priorities.”
Currently, US airlines are required to refund passengers for cancelled flights but are not mandated to compensate for delays, unlike the European Union, Canada, Brazil, and Britain, which have established airline delay compensation rules.
Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines, and others, welcomed the decision. “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 group said. It also warned that Biden’s cash compensation plan would have raised ticket prices.
However, former Biden economic adviser Bharat Ramamurti criticised the reversal, saying the rule “would not only have put real cash back in your hands for badly delayed or cancelled flights, but would have resulted in far fewer delayed and cancelled flights in the first place.”
Major US carriers in 2022 had committed to paying for meals, hotel stays, and other expenses when they caused significant flight disruptions.
The Transportation Department also indicated it is considering rescinding a separate Biden-era regulation from April 2024, which required airlines and ticket agents to disclose service fees alongside airfares to help consumers avoid unexpected costs. That rule had been put on hold by a court pending legal challenges.
In addition, the department plans to reduce regulatory burdens by clarifying the definition of a flight cancellation that entitles passengers to refunds and revisiting rules on ticket pricing and advertising. A spokesperson for Transportation Secretary Sean Duffy said the department “will faithfully implement all aviation consumer protection requirements mandated by Congress” but added that some Biden-era rules “went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
The Trump administration has also taken other steps to reverse Biden’s airline consumer initiatives. In May, the Justice Department dropped a lawsuit against Southwest Airlines filed by the Biden administration, which had accused the carrier of illegally operating chronically delayed flights.