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Trump Administration Withdraws Biden-Era Plan for Airline Delay Compensation

Transportation officials said the mandate would impose unnecessary burdens, favoring a market-based approach to passenger remedies.

Overview

  • The Department of Transportation on Friday formally ended the proposal to require airlines to pay cash when delays are the carrier’s fault.
  • The shelved plan envisioned payments of $200–$300 for domestic delays of at least three hours and up to $775 for longer disruptions within airline control.
  • The move leaves U.S. travelers without mandated delay compensation, unlike the European Union, Canada, Brazil and the United Kingdom.
  • Airline trade groups backed the reversal and told regulators required payouts could cost carriers as much as $5 billion per year.
  • A group of 18 Democratic senators had urged keeping the rule, while USDOT is also weighing rollbacks to fee-disclosure and other consumer-protection rules.