U.S. Drops Plan to Require Airline Compensation for Flight Delays-Here's What It Means for Travelers

"The Transportation Department initially announced its intent to nix the rule in September and formalized the decision in the Federal Register this week, NBC News reported. "These actions are part of our broader effort to ensure the traveling public is treated fairly while also recognizing how overly burdensome regulations will raise ticket prices for the traveling public and compromise safety for the sake of efficiency," a DOT spokesperson told NBC News."

"The spokesperson added the now-ditched proposed policy "does not reflect the compensation consumers are currently entitled to with respect to delays and cancellations." When the rule was initially proposed by the former president's administration, airlines would have been required to issue reimbursement depending on how long the delay was, NBC News noted. The compensation scale started at $200 and went all the way up to $775 for delays lasting at least nine hours."

The Transportation Department formally withdrew the Biden-era rule requiring airlines to reimburse passengers for lengthy, airline-controlled delays. The department announced its intent in September and finalized the repeal in the Federal Register. A DOT spokesperson said the action aims to treat travelers fairly while avoiding overly burdensome regulations that could raise ticket prices and compromise safety. The proposed policy would have required reimbursements ranging from $200 up to $775 for delays of nine hours or more, aligning U.S. practice more closely with EU and Canada passenger-rights standards. Airlines and industry groups argued deregulation better serves customers and that the rule exceeded DOT authority.

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