The Trump administration on Friday formally withdrew a Biden-era directive that would have required airlines to compensate passengers for lengthy flight delays.
The U.S. Department of Transportation signaled it would do away with the proposed rule, which never went into effect, in early September. That decision was finalized this week, with the department arguing that the plan would have created “unnecessary regulatory burdens.”
The order is one of several consumer protection laws the Trump administration has canceled or considered canceling over the last year.
First put forward in 2024 under then-Transportation Secretary Pete Buttigieg, the compensation policy 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 calculated and administered on an ad hoc basis, with no federal oversight.
Buttigieg said the rule would have standardized the compensation structure and eliminated “headaches and haggling” for passengers.
The Department of Transportation argued that airlines already have a strong incentive to accommodate passengers facing delayed flights and frequently offer reimbursements and credits without prompting from the federal government.
“The department is not convinced that a new regulatory regime that includes passenger compensation requirements would yield meaningful improvements in airline flight performance,” the DOT said.
