Overview
- USDOT on Friday formally rescinded the delayed-flight compensation initiative, a Biden-era proposal that never took effect and will be noted in the Federal Register.
- The shelved plan would have mandated $200–$300 for domestic delays of at least three hours and up to $775 for longer disruptions when the cause was within an airline’s control.
- Airlines and industry groups pushed for the rollback and praised the decision, arguing mandated payouts would impose significant costs that could reach into the billions.
- A group of 18 Democratic senators urged the administration to keep the proposal, calling it a common-sense way to hold carriers accountable for carrier-caused disruptions.
- Unlike the EU, Canada, Brazil and the UK, the U.S. still has no delay-compensation mandate, and USDOT signaled it may revisit other consumer rules, including fee disclosures and refund definitions.