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Airlines No Longer Required to Reimburse Passengers for Delays, Cancellations

by aoife.oriordan

Nov 19, 2025

On Nov. 17, the Trump administration officially withdrew a proposal that would require airlines to compensate passengers for significant delays or cancellations within the airline’s control.

Plans to withdraw the proposal were first announced in September, but the Department of Transportation has now formalized the withdrawal in the Federal Register.

The proposal originally stated airlines would be required to reimburse passengers based on how long delays lasted, beginning at $200 and going up to $775 for domestic delays at least nine hours long. Although never enacted, the proposal would have mirrored similar airline rules in Europe.

The withdrawal has been backed by U.S. airlines and Airlines for America, which represents American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, Alaska Airlines and others.

Last week, a DOT spokesperson said the Biden-era proposal “does not reflect the compensation consumers are currently entitled to with respect to delays and cancellations … These actions are part of our broader effort to ensure the traveling public is treated fairly while also recognizing how overly burdensome regulations will raise ticket prices for the traveling public and compromise safety for the sake of efficiency.”

According to the official document filed in the Federal Register, airline representatives argue airlines have incentives to “take care of passengers during significant flight disruptions and already do so voluntarily. At this time, the 10 largest U.S. passenger air carriers, whose networks account for more than 97 percent of domestic scheduled passenger enplanements, maintain voluntary commitments in their customer service plans … to assist passengers affected by cancellations and significant delays that are controllable by the carrier.”

The document cites examples such as guaranteed meals and rebooking without charge, guaranteed hotel accommodation, and guaranteed ground transportation to and from the hotel for passengers affected by controllable overnight delays and cancellations.

The Department of Transportation also expressed hesitation the proposal would not guarantee “meaningful improvements in airline flight performance” and would instead result in “unnecessary regulatory burdens.”

No major U.S. carrier currently offers guaranteed cash compensation for significant delays or cancellations. This is a departure from airline rules in other countries, including the European Union, Canada and the United Kingdom. The European Union, for instance, requires airlines to provide compensation between $290 and about $700 depending on length of delays. That said, the EU is currently planning to change this system, with plans to increase the minimum delay threshold to four hours instead of the present three-hour minimum.

What are your thoughts on the proposal withdrawal? Do you think U.S. airlines should be required to compensate passengers with cash for delays or cancellations within the airline’s control? Do you think U.S. airlines should abide by rules similar to other countries or not? Why? Email us at letters@globaltravelerusa.com. Please include your full name and location.

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