The Trump administration is abandoning a Biden-era plan that would require airlines to pay passengers cash and cover expenses for carrier flight delays and cancellations, dealing a major blow to consumer protections amid record-high numbers of government complaints from travelers.
A proposed federal rule change initiated by Joe Biden’s administration in 2023 would require airlines to compensate passengers up to $775 as well as for the costs of meals, hotel stays and rebooking fees in cases where flights were delayed or cancelled due to issues under the companies’ control, like mechanical failures.
Biden’s Department of Transportation sought public comment for the proposal beginning last December, but the White House said Thursday that the agency is withdrawing the plan entirely to remain “consistent with department and administration priorities.”
Airlines for America — a trade group representing American Airlines, Delta Air Lines and United Airlines — told The Independent that it is “encouraged” by the administration’s move to review “unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers.”
“We look forward to working with DOT on implementing President Trump’s deregulatory agenda,” the group said.
An agency spokesperson told The Independent that it will “faithfully implement all aviation consumer protection requirements mandated by Congress, including the requirement to refund ticket prices to passengers in the case of airline canceled or substantially delayed flights when consumers choose not to travel.”
“Some of the rules proposed or adopted by the previous administration, however, went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements,” the spokesperson said.
The Trump administration is also considering rescinding Biden-era regulations that require airlines and ticket agents to disclose service fees with the cost of airfare in an effort to prevent ticket buyers from dealing with unexpected fees tacked on their bill.
That proposal was put on hold in federal court following an industry-led legal challenge.
Airlines in the United States are required to refund passengers for canceled flights, but passengers are on their own when it comes to delays.
Since taking office, the Trump administration has rolled back a number of other consumer protections and gutted regulatory agencies that enforce them while pushing for a deregulatory agenda in environmental protections, finance and healthcare.
Former Biden economic adviser Bharat Ramamurti said the travel compensation rule “would not only have put real cash back in your hands for badly delayed or canceled flights, but would have resulted in far fewer delayed and canceled flights in the first place.”
“A slap in the face for air travelers, solely for the benefit of the airlines,” he said.
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