Earlier in September, Simple Flying reported that the US government was considering dropping a proposal that would have required airlines to compensate passengers for significant delays. On Friday, November 14, the Trump administration confirmed that it is formally withdrawing the plan. The proposal, which was announced last year under the Biden administration, would have required airlines to pay passengers $200–$300 for domestic flight delays of at least three hours and up to $775 for longer disruptions.
Last month, a group of 18 Democratic senators urged the administration to keep the plan in place, arguing that airlines should be responsible for costs incurred by travelers when delays are within a carrier’s control. Despite this, the proposal will not move forward. The US Department Of Transportation (DOT) said the rule would impose “unnecessary regulatory burdens.”
Agency Cites Legal Limits And Cost Concerns
In a filing submitted on Friday to the Federal Register, the DOT said federal law does not give the agency the authority to require airlines to provide compensation for flight delays. That said, under the current rules, airlines must refund passengers for canceled flights, but they are not obligated to pay compensation when delays occur. The withdrawal of the proposal will be published on Monday.
As reported by The New York Times, citing a DOT spokeswoman, the department views its “deregulatory actions” as part of a broader effort to ensure travelers are treated fairly and that it believes such rules could raise ticket prices and “compromise safety for the sake of efficiency.” The department also noted that withdrawing the proposal would allow airlines to “compete on the services and compensation that they provide to passengers rather than imposing new minimum requirements, which would impose significant costs on airlines.”
US Airlines And Industry Groups Back The Decision
Industry groups have broadly welcomed the administration’s decision to withdraw the proposal. Trade associations representing major US carriers had long argued that the previous proposal would have raised operational costs. Similarly, airlines also maintained that the compensation requirement exceeded the DOT’s authority and would have increased their costs and eventually pushed fares higher. Airlines for America, which represents United, 
American Airlines, Delta, Southwest, Alaska, and others, told The New York Times that carriers already provide assistance to inconvenienced passengers.
A spokeswoman said, “A4A carriers provide automatic refunds for significant delays and cancellations if a passenger chooses not to be rebooked, and they have competitive policies regarding reimbursements for food, transportation, and lodging for cancellations and significant delays within a carrier’s control.” Several airlines have outlined these policies in their customer service plans. American Airlines, for instance, states that if a delay or cancellation is caused by the airline, passengers may request a hotel voucher when they are stuck overnight away from home, transportation to and from the hotel, and meal vouchers for delays of three hours or more.
If the airline cannot provide a voucher, it says it will reimburse reasonable expenses. The carrier also notes that passengers are entitled to a refund under DOT rules if a flight is significantly disrupted, and they choose not to be rebooked. 
United Airlines similarly advises travelers that if a flight is canceled or significantly delayed, they may contact the airline’s customer service center to cancel their trip and submit a refund request.
US Rules Stand Apart From Compensation Systems Used Internationally
That said, no major US carrier offers guaranteed cash compensation for significant delays. Indeed, this differs from the rules elsewhere in the world, including those in the European Union, Canada, Brazil, and the UK. In the EU, for instance, passengers are covered under Regulation EC 261/2004 (referred to as EU261), which requires airlines to provide fixed compensation for long delays and cancellations that are within a carrier’s control. The regulation covers all flights departing from an EU airport, regardless of the airline, and all flights arriving in the EU when operated by a European carrier.
It requires airlines to provide compensation ranging from $290 (€250) to $697 (€600), along with duty-of-care obligations. The amounts are tied to the length of the flight and the overall delay at arrival. For flights up to 1,500 kilometers, passengers may receive $290 (€250) for delays of more than three hours. For flights between 1,501 and 3,500 kilometers within the EU, the amount increases to $465 (€400). Furthermore, long-haul flights over 3,500 kilometers may qualify for $349 (€300) for delays of three to four hours and $697 (€600) for delays beyond that threshold.
The EU is now preparing changes to the system. As reported by The Guardian, policymakers have agreed to increase the minimum delay threshold to four hours for short-haul flights and six hours for long-haul services. So, compensation would shift to $349 (€300) and $581 (€500), respectively. However, consumer groups have criticized the plan, noting that most delays fall between two and four hours and would no longer qualify under the updated rules.
