US President Donald Trump’s administration said on Friday it was formally withdrawing a plan by his predecessor to require airlines to pay passengers cash compensation when US flight disruptions are caused by carriers.
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In December 2024, the US Transportation Department (DOT) under then-president Joe Biden sought public comment on writing rules to require airlines to pay US$200 to US$300 for domestic delays of at least three hours and up to US$775 for longer delays.
In September, the USDOT first disclosed it planned to withdraw the proposal. On Friday, it said the rules would result in “unnecessary regulatory burdens” in explaining why it would not go forward.
Last month, a group of 18 Democratic senators urged the Trump administration not to drop the compensation plan.
“This is a common-sense proposal: when an airline’s mistake imposes unanticipated costs on families, the airline should try to remedy the situation by providing accommodation to consumers and helping cover their costs,” said the letter signed by Democratic Senators Richard Blumenthal, Maria Cantwell, Ed Markey and others.
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Airlines in the US must refund passengers for cancelled flights, but are not required to compensate customers for delays. The European Union, Canada, Brazil and Britain all have airline delay compensation rules. No large US airline currently guarantees cash compensation for significant flight disruption.