Overview
- The department filed notice on Nov. 14 formally withdrawing the compensation proposal after signaling its intent in September, and the rule never took effect.
- The Biden plan would have required $200–$300 for domestic delays of at least three hours and up to $775 for very long disruptions, limited to causes within an airline’s control.
- Airlines and trade groups opposed the mandate, warning of roughly $5 billion in costs and potential fare increases, and they welcomed the reversal.
- U.S. travelers remain entitled to refunds for cancellations but not delay compensation, unlike regimes in the EU, Canada, Brazil and the UK.
- DOT said it will review other Biden-era aviation rules, including fee-disclosure requirements, definitions of cancellations that qualify for refunds, and standards for ticket pricing and advertising.