Overview

• The withdrawn proposal would have required tiered cash payments of roughly $200–$300 for 3–6 hour domestic delays, up to $775 for very long delays, plus meals, lodging and free rebooking for airline-caused disruptions.
• In a notice posted Thursday, the department also said it is weighing rescission of a 2024 rule to display service fees with fares and signaled new rulemakings to redefine what counts as a refundable cancellation and to revisit pricing and advertising rules.
• Automatic refund requirements finalized last year remain in effect, but there is still no federal cash compensation for delays in the U.S., unlike regimes in the EU, U.K., Canada and Brazil.
• Airlines for America, representing major carriers, praised the move as avoiding burdensome rules that it argues would raise ticket prices, while DOT officials cited limits on the agency’s statutory authority.
• Consumer advocates and former Biden officials criticized the reversal, arguing mandatory payouts would have protected travelers and created stronger incentives for on-time operations, and they noted courts have already paused related fee-disclosure rules.