US drops Biden plan to require airlines to pay compensation for disrupted flights

The White House said in a document posted on Sept. 4 that USDOT plans to withdraw the notice "consistent with department and administration priorities."

Travelers wait in a long line to check on their baggage from their cancelled flights at Chicago Midway International Airport in Chicago, Illinois, U.S., December 27, 2022. / REUTERS/Kamil Krzaczynski/File Photo

President Donald Trump's administration said on Sept. 4 it will drop a plan by his predecessor to require airlines to pay passengers cash compensation when U.S. flight disruptions are caused by carriers.

In December, the U.S. Department of Transportation under then-President Joe Biden sought public comment on the rulemaking process about whether airlines should be required to pay $200-$300 for domestic delays of at least three hours and up to $775 for longer delays. U.S. airlines sharply criticized the proposal.

Also Read: US proposes to extend Newark airport flight cuts through October 2026

The White House said in a document posted on Sept. 4 that USDOT plans to withdraw the notice "consistent with department and administration priorities."

USDOT also disclosed on Sept. 4 it is considering rescinding regulations issued under Biden in April 2024 that required airlines and ticket agents to disclose service fees alongside airfares to help consumers avoid unnecessary or unexpected fees. The requirement was put on hold by the court pending an industry legal challenge.

The department is also planning to reduce regulatory burdens on airlines and ticket agents by writing new rules detailing the definition of a flight cancellation that entitles consumers to ticket refunds, as well as revisit rules on ticket pricing and advertising.

Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines, and others, praised the actions and said Biden's cash compensation plan would raise ticket prices.

"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.

Airlines in the U.S. must refund passengers for canceled flights, but are not required to compensate customers for delays. Major carriers in 2022 committed to paying for meals, hotel stays, and other expenses when they cause significant flight disruptions.

Canada, Brazil, the European Union, and the United Kingdom all have airline delay compensation rules.

In December, USDOT said it was considering whether airlines must cover meals, hotel stays, and other costs after carrier disruptions and whether to require airlines to rebook passengers on their next available flights, or if flights are unavailable for 24 hours, potentially requiring them to use competitors.

The Trump administration has taken other steps to reverse Biden's airline consumer efforts.

In May, the Justice Department dropped a lawsuit against Southwest Airlines filed by the Biden administration in its final days that accused the carrier of illegally operating chronically delayed flights.

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