US Department of Transportation Cancels Airline Passenger Compensation Rule

The Trump administration has announced it will not pursue the Biden-era proposed rule requiring airlines to pay passengers cash compensation for flight delays caused by carriers. This proposed rule, which suggested payments ranging from $200 to $775 depending on the length of delay, faced strong opposition from U.S. airlines. The U.S. Department of Transportation (USDOT) plans to withdraw the notice related to this compensation rule, aligning with the current administration's priorities. Airlines have welcomed this move, with industry groups calling the previous regulations unnecessary and burdensome. Additionally, the USDOT is considering rolling back other Biden-era regulations, including those related to fee disclosures alongside airfares. The future of consumer protections in air travel remains uncertain as the administration reviews these policies.