The Trump administration formally withdrew a proposed rule Friday that would have required airlines to compensate passengers for significantly delayed or canceled flights.
The rule, which was proposed late last year under the Biden administration and former Secretary of Transportation Pete Buttigieg, would have required airlines to pay passengers $200 to $300 for domestic flights delayed more than three hours.
The rule would have applied to delays that are caused by something considered to be within the airline's control, like maintenance issues or staffing challenges, but not external factors like air traffic control delays or bad weather. That would have aligned the U.S. more closely with Europe's EU261 rule, which is generally seen as the gold standard of consumer protections in air travel.
The U.S. Department of Transportation, under current Secretary Sean Duffy, said in September that it planned to withdraw the proposed rule, and officially repealed it Friday, as first reported by Reuters. The DOT said the rule would result in "unnecessary regulatory burdens," according to Reuters.
Passengers will still be entitled to refunds when their flight is canceled and they choose not to travel. Under a measure passed last year, refunds must be issued automatically to the original form of payment.
Related: Getting a refund for a canceled or delayed flight: What to know in 2025
Friday's move aligns with the Trump administration's broader deregulatory stance, which pushes to remove regulations and rely on competition between companies instead.
The airline industry, which pushed for the passenger compensation rule to be nixed, has seen the current regulatory environment as an opportunity, and has been aggressive in pushing for further rules to be scaled back or removed altogether.
In May, Airlines for America, or A4A, filed a 93-page request seeking to roll back a slew of consumer protections. A4A is the lobbying organization for U.S. airlines and represents Alaska Airlines, American Airlines, Delta Air Lines, JetBlue, Southwest Airlines, United Airlines, Hawaiian Airlines and cargo carriers Atlas Air, FedEx and UPS.
It's unclear how many airline rules the DOT might ultimately roll back — if any at all. But if Friday's move is any indication, it's likely that this won't be the last consumer protection rule we see revoked.
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