The Trump administration on Friday formally withdrew a proposed rule that would have required airlines to compensate passengers whose flights were severely delayed or canceled.
The rule, introduced late last year under the Biden administration and former Transportation Secretary Pete Buttigieg, would have required airlines to pay passengers $200 to $300 if their domestic flights were delayed by more than three hours.
The rule applies to delays caused by things within the airline’s control, such as maintenance issues or staffing challenges, but does not apply to external factors such as air traffic control delays or bad weather. This would more closely align the United States with Europe’s EU261 rules, which are generally considered the gold standard for consumer protection in air travel.
The U.S. Department of Transportation, under current Secretary Sean Duffy, said in September it planned to withdraw the proposed rule and officially repeal it on Friday, Reuters first reported. The Transportation Department said the rule would result in “unnecessary regulatory burdens,” Reuters reported.
When a flight is canceled and they choose not to travel, passengers are still entitled to a refund. Under a measure passed last year, refunds must be automatically issued to the original method of payment.
Related: Getting a refund for a canceled or delayed flight: What to know in 2025
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Friday’s move is in line with the Trump administration’s broader deregulatory stance, which has pushed to roll back regulations and rely on competition among companies.
The airline industry, which has pushed for the removal of passenger compensation rules, sees the current regulatory environment as an opportunity and has been aggressively pushing for further reductions or removal of the rules altogether.
In May, American Airlines (A4A) submitted a 93-page request seeking to roll back a series of consumer protection measures. A4A is the lobbying group for American Airlines, representing Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways, Southwest Airlines, United Airlines, Hawaiian Airlines and cargo carriers Atlas Air, FedEx and United Parcel Service.
It’s unclear how many, if any, airline regulations the Transportation Department might ultimately roll back. But if Friday’s move is any indication, this likely won’t be the last consumer protection rule we see rolled back.
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