US axes airline compensation plan

Friday, 05 Sep, 2025 1

The US administration said it will scrap the plan to require airlines to compensate passengers for long delays and cancelations.

The proposal was brought in by the previous Biden Administration but was not ratified.

The Trump Administration will now scrap it.

Trade group Airlines for America, which represents major airlines, welcomed it.

“We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers,” it said.

The White House said it is ‘consistent with Department and administration priorities;’ to drop federal regulations it deems are burdensome.

It would have put airlines on the hook for compensation starting at $200 for canceled flights and long delays.

It also included reimbursement for meals and hotels if required.

Airlines have claimed it would only drive up airfare prices.



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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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