Overview
- The Transportation Department finalized the rollback in a Federal Register notice on Monday after signaling the move in September.
- The shelved proposal would have required tiered cash payments ranging from $200 to $775 for long, airline-controlled delays and was never enacted.
- Officials said imposing minimum compensation standards would add significant costs, raise ticket prices and could compromise safety, opting instead to let carriers compete on service.
- Airlines and trade groups urged abandonment of the plan, while consumer advocates and hundreds of commenters backed it; no U.S. carrier currently guarantees cash for delays.
- The decision comes after a prolonged government shutdown that strained air traffic control, FAA-ordered flight reductions of up to 6%, and data showing over 60% of 3-hour-plus delays in 2022–2023 were airline-caused.