Leading U.S. airlines have called on the Department of Transportation (USDOT) to halt a review initiated under the Biden administration that considers requiring carriers to compensate
passengers for flight disruptions.
Airlines for America, a trade group representing major carriers such as American Airlines, Delta Air Lines, and United Airlines, has urged the Trump administration to discontinue the review, which began in December. The review seeks public input on whether airlines should provide cash compensation for disruptions caused by the carriers, similar to policies in the European Union and Canada.
In a statement, the group argued that airlines are already incentivized to provide high-quality service and claimed that the USDOT lacks the legal authority to enforce such a requirement. They warned that mandatory compensation would significantly increase airline operating costs and lead to higher ticket prices.
The International Air Transport Association (IATA), which represents airlines worldwide, also criticized the proposal, stating that compensation programs have become "wealth transfer tools" that have cost airlines billions without significantly reducing flight disruptions.
Spirit Airlines voiced concerns that such a requirement could have unintended safety implications, suggesting that carriers might feel pressured to operate flights that should otherwise be delayed or canceled due to safety concerns.
Under the proposal, USDOT sought public feedback on requiring airlines to compensate passengers with payments ranging from $200-$300 for domestic delays exceeding three hours, $375-$525 for six-hour delays, and $750-$775 for delays of nine hours or more.
Former Transportation Secretary Pete Buttigieg previously stated that such a rule would shift economic incentives, motivating airlines to take greater measures to prevent delays.
In May 2023, President Joe Biden announced plans to implement regulations requiring airlines to compensate passengers for disrupted flights. Currently, while airlines must refund passengers for canceled flights, they are not obligated to provide compensation for delays.
Many major carriers have already committed to covering costs such as meals and hotel stays in cases of significant disruptions they cause.
Meanwhile, last month, a U.S. court blocked a separate Biden administration rule from 2024 that mandated upfront disclosure of airline service fees, ruling that USDOT had failed to follow proper procedural requirements.
