Trump Administration Repeals Airline Compensation Rule for Delays

The Trump administration has officially withdrawn a proposed rule that would have mandated airlines to compensate passengers for significant flight delays and cancellations. This decision, made public on Friday, reverses a measure introduced during the Biden administration aimed at enhancing consumer protections in air travel.

The proposed rule, which was put forward late last year by former Secretary of Transportation Pete Buttigieg, would have required airlines to pay passengers between $200 and $300 for domestic flights that experienced delays of more than three hours. The compensation would have applied specifically to delays attributed to factors within the airlines’ control, such as maintenance issues or staffing shortages, while excluding circumstances like air traffic control delays or adverse weather conditions. This approach was intended to align U.S. regulations more closely with the European Union’s EU261 rule, widely regarded as a benchmark for consumer rights in air travel.

On September 1, the U.S. Department of Transportation, now under Secretary Sean Duffy, announced plans to withdraw the proposed rule, citing concerns that it would impose “unnecessary regulatory burdens” on airlines. The official repeal followed shortly after, as reported by Reuters. Despite this rollback, passengers will still be entitled to refunds if their flights are canceled and they opt not to travel. A measure passed last year ensures that refunds are issued automatically to the original payment method.

The decision to repeal the compensation rule aligns with the Trump administration’s broader agenda of deregulation, emphasizing a reliance on market competition rather than regulatory oversight. The airline industry has actively lobbied for the cancellation of the compensation rule, viewing the current regulatory landscape as an opportunity to advocate for further reductions in consumer protections.

In May, Airlines for America (A4A), the lobbying group representing major U.S. airlines including Alaska Airlines, American Airlines, Delta Air Lines, JetBlue, Southwest Airlines, and United Airlines, submitted a comprehensive request to roll back numerous consumer protection regulations. The extent to which the Department of Transportation will continue to dismantle existing airline regulations remains uncertain, but Friday’s actions suggest that further rollbacks of consumer protection measures could be on the horizon.

As the landscape of air travel regulations evolves, travelers are encouraged to stay informed about their rights and the protections available to them.