Bad news if your flight is late: The passenger payout proposal has been frozen

The question on most people’s lips when their flight is delayed, or worse, cancelled, is whether they are eligible for compensation.

Plan to compensate passengers for delayed flights

In December 2024, US Department of Transportation (DOT) proposed a rule to provide compensation “to mitigate passenger inconveniences”. During the last month of the Biden administration the Airline Passenger Rights advance notice was floated - a plan that would require US airlines to pay passengers cash compensation for disruptions which the carriers were either directly responsible for, or which were in their control (maintenance, crew issues, aircraft cleaning, baggage loading, refueling...).

However, the rule never came into effect and this week, the Trump administration said it would be dropping the plan.

DOT proposal too expensive to implement

The DOT sought public comment on the rule-making process about whether airlines should be required to pay $200 to $300 for domestic delays of at least three hours and up to $775 for longer delays. Additional compensation was also considered, including: free rebooking, along with other amenities such as meals, accommodation for overnight delays, and transportation to and from lodging.

The proposal was widely criticized at the time by major airlines as well as the International Air Transport Association (IATA), who called for the notice to be terminated.

However, in a statement released on Thursday, the White House explained that the Transportation Department is set to withdraw the notice “consistent with department and administration priorities.”

Compensation packages outside of the United States

The European Union, Canada, Brazil and Britain all have airline delay compensation rules but US airlines are only expected to refund passengers for canceled flights, not delays.

Airlines for America (A4A), the trade association for the leading US carriers, welcomed the move, and explained that had the proposal come into effect, airlines would have been forced to raise ticket prices.

“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,” an A4A spokesperson said.

The DOT plans to restructure rules to determine the exact definition of a flight cancellation that would lead airlines to offer consumers ticket refunds.

But for now, if your flight is subjected to delays (almost a quarter are delayed by 15 minutes in the US every year) or arrives late, there isn’t a great deal that you can do about it, other than resentfully accept these things happen.

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