The Trump administration is moving to withdraw a Biden-era plan that would have required airlines to compensate passengers stranded by delays if the cause of the holdup was within the carrier’s control.
In a document released Thursday, the U.S. Department of Transportation said it “plans to withdraw” the policy. Neither the department nor the White House offered an explanation for the reversal.
The proposed rule, which never went into effect, was put forward in December, during the closing weeks of the Biden administration under then-Transportation Secretary Pete Buttigieg. It would have required airlines to pay passengers $200 to $300 for delays of at least three hours and up to $775 for delays of nine hours or more.
Carriers would only have been required to reimburse passengers if the cause of the delay was within their control, such as a mechanical issue with an aircraft or a problem with their booking and scheduling system.
Many airlines already compensate passengers for lengthy delays, but this process is typically initiated by travelers seeking refunds, and the payment, if any, is decided and administered on an ad hoc basis, with no federal oversight.
Carriers opposed the rule and argued it would drive up operating costs, which would return to passengers in the form of higher ticket prices.
Airlines for America, an industry trade group that represents all of the U.S.-based legacy carriers, praised the administration’s decision to block the rule.
“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 in a statement to NBC News.
Reuters also reported this week that the Transportation Department is looking at revoking a 2024 regulation that would require airlines to disclose their service fees. That rule was challenged in court and has not yet taken effect.
