The Trump administration has dropped a plan introduced under ex-President Joe Biden that would have made airlines pay passengers cash for long delays. The proposed rule required the US airlines to pay at least $200 to passengers for domestic delays of three hours or more, $375–$525 for delays lasting six to nine hours, and $750–$775 for delays of nine hours or longer.
The White House confirmed that the Department of Transportation (DOT) will formally withdraw the proposal, saying it no longer matches current priorities.
US airlines only required to refund tickets for cancelled flights
Currently, US airlines are only required to refund tickets for canceled flights, not delayed ones. This contrasts with the European Union, Canada, Brazil, and Britain, where passengers are entitled to cash compensation. Airlines had pushed back strongly against Biden’s idea, warning it would raise ticket prices.
A major industry group representing carriers such as American, Delta, and United praised the Trump administration’s move, calling the rule unnecessary and overly burdensome.
Critics, however, argue that the plan would have not only put money back into passengers’ pockets but also pressured airlines to reduce delays and cancellations.
Trump may also roll back other Biden-era rules
The DOT also revealed it may roll back other rules from Biden’s time in office. One such rule, issued in April 2024, required airlines and ticket sellers to display service fees alongside ticket prices so customers could avoid hidden costs. The rule is already on hold due to a court challenge.
Instead, the DOT said it will work on new regulations to ease industry burdens, including clearer definitions of what counts as a “cancellation” eligible for a refund and updated rules on ticket pricing and advertising. A spokesperson for Transportation Secretary Sean Duffy told Reuters that the department will enforce all consumer protections passed by Congress but will reconsider rules that go beyond what the law requires.
This is not the first reversal. In May, the Justice Department dropped a Biden-era lawsuit against Southwest Airlines, which accused the carrier of operating chronically delayed flights.