Travelers experiencing delays or cancellations will not automatically owe financial compensation after the Trump administration’s decision this week.
The U.S. Department of Transportation has withdrawn a proposed rule that would require airlines to compensate passengers $200 or more to resolve major flight interruptions for maintenance or crew personnel.
Related: Airline lobby point removes passenger protection
Major airlines praised the move, which had previously believed the measure would raise fares.
The compensation rule first proposes that under the Biden administration and former Transportation Secretary Pete Buttigieg, the compensation rule will require airlines to pay passengers $200 to $300 to delay domestic flights for at least three hours.
Passengers will be eligible for interruption compensation that is considered to be the fault of the airline – similar to the protections enjoyed by EU passengers.
When President Trump took office in January, the federal rulemaking process for the policy was still underway. But according to this week’s documents, the government chose not to continue enforcing the new regulations.
In a statement to TPG, DOT said it would “faithfully implement” all consumer protection policies set by Congress. This included stricter refund rules passed last year – requiring airlines to automatically refund passengers who decided not to travel if the flight was cancelled or a significant delay was made, a spokesperson said.
“However, some of the rules proposed or adopted by the previous administration exceed the rules required by Congress regulations and we intend to reconsider these diplomatic requirements,” a DOT spokesman said Friday.
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Regulatory changes
The Biden administration has taken a positive attitude toward consumer rights in air travel, putting ongoing pressure on airlines – from delays and cancellations of travelers to family seating policies and carriers’ treatment of passengers with disabilities.
The trading group of the largest airline in the United States said Friday it looks forward to working with the Trump administration to implement its “relax the adjustment agenda.”
“The Department of Transportation reviews unnecessary and heavy regulations that go beyond its authority and do not address issues that are important to our customers,” said American Airlines.
What rights do consumers have?
Despite the government’s apparent termination of efforts to delay compensation for flights, passengers still have the right to refund, as well as the option to recover expenses when stranded.
Air travel refund rules
The DOT policy still requires airlines to return passengers when cancelling or significantly delaying passengers, and passengers choose not to fly.
According to laws passed by Congress last year, refunds should be provided to customers who pay via credit cards within 7 days.
Consumer Rights Dashboard Complete
At this point, it is still intact: DOT’s Air Travel Consumer Rights Dashboard, which spells out the airline’s strategy to protect costs such as catering, hotel and ground transportation on the way and is considered responsible.
The dashboard also ranks airlines based on its home seat policy.
Credit cards with travel insurance may come in handy
And, don’t forget: there are many travel credit cards with built-in travel insurance protections that offset the expense of unexpected hotel nights or rides (and other fees) when you are stuck.
It is worth noting that even if your travel interruption is due to bad weather, these protections can apply, which few airlines offer any kind of compensation.
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