US drops Biden plan to require airlines to pay compensation for disrupted flights

By David Shepardson

WASHINGTON (GWN) –President Donald Trump‘s administration said on Thursday it can drop a plan by his predecessor to require airlines to pay passengers money compensation when U.S. flight disruptions are prompted by carriers.

In December, the U.S. Department of Transportation under then-President Joe Biden sought public remark on the rulemaking course of about whether or not airlines must be required to pay $200-$300 for home delays of at least three hours and up to $775 for longer delays. U.S. airlines sharply criticized the proposal.

The White House said in a doc posted on Thursday that USDOT plans to withdraw the discover “consistent with department and administration priorities.”

USDOT also disclosed on Thursday it’s contemplating rescinding laws issued under Biden in April 2024 that required airlines and ticket brokers to disclose service charges alongside airfares to help customers keep away from pointless or surprising charges. The requirement was put on maintain by the court pending an industry legal problem.

The division is also planning to scale back regulatory burdens on airlines and ticket brokers by writing new guidelines detailing the definition of a flight cancellation that entitles customers to ticket refunds, as properly as revisit guidelines on ticket pricing and promoting.

Airlines for America, a commerce group representing American Airlines, Delta Air Lines, United Airlines, and others, praised the actions and said Biden’s money compensation plan would raise ticket costs.

“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,” the group said.

Airlines in the U.S. must refund passengers for canceled flights, but should not required to compensate prospects for delays. Major carriers in 2022 dedicated to paying for meals, lodge stays, and other bills when they trigger important flight disruptions.

Canada, Brazil, the European Union, and the United Kingdom all have airline delay compensation guidelines.

In December, USDOT said it was contemplating whether or not airlines must cowl meals, lodge stays, and other prices after provider disruptions and whether or not to require airlines to rebook passengers on their next out there flights, or if flights are unavailable for 24 hours, doubtlessly requiring them to use opponents.

The Trump administration has taken other steps to reverse Biden’s airline shopper efforts.

In May, the Justice Department dropped a lawsuit against Southwest Airlines filed by the Biden administration in its remaining days that accused the provider of illegally working chronically delayed flights.

(Reporting by David ShepardsonModifying by Rod Nickel and David Gregorio)