In the European Union, a 2004 law guarantees airline passengers up to $700 as compensation for delays of three hours or more. The Trump administration just killed a similar proposal for American travelers.
On Friday, federal officials withdrew a Biden-era proposal that, if enacted, would have required airlines to compensate passengers up to $525 for carrier-caused domestic flight delays between three and nine hours and $750 to $775 for those exceeding nine hours.
It would have also required airlines to pay for delay-related expenses, like meals, transportation, and lodging. The carrier would be at fault for delays caused by issues such as aircraft maintenance or computer software outages.
The proposal is similar to the EU Air Passenger Rights Regulation, known as EC261, which offers passengers between €250 (about $290) and €600 (about $700) in delay compensation, depending on the flight distance.
The US version had been opposed by major US airlines and backed by passenger advocates who argued it would reduce delays, as it has in Europe. Now that the rule has been officially thrown out, things will remain different in the US.
A spokesperson for the Department of Transportation told Business Insider that Biden’s proposal did “not reflect the compensation consumers are currently entitled to with respect to delays and cancellations.”
Most US airlines commit to offering hotel and meal vouchers during carrier-controlled delays and cancellations, per the Airline Customer Service Dashboard developed under the Biden Administration. By law, carriers must refund canceled flights that aren’t rebooked.
Airlines for America (A4A), the main lobbying group for major US airlines, told Business Insider that airlines “compete rigorously to provide quality service” because their business models are based on “satisfied, repeat customers.”
“A4A carriers provide automatic refunds for significant delays and cancellations if a passenger chooses not to be rebooked, and they have competitive policies regarding reimbursements for food, transportation, and lodging for cancellations and significant delays within a carrier’s control,” A4A added.
American Airlines and Delta Air Lines referred Business Insider to A4A. United Airlines said it had nothing to share.
Delay compensation is a highly debated topic
Consumers had largely applauded the Biden proposal. It would have relieved a monetary burden during long delays and held airlines more accountable as they’d be incentivized to improve on-time performance.
An October study from the Association of Passenger Rights Advocates (APRA) said flights under Europe’s EC261 are 70% less likely to be delayed for more than three hours compared to the US. It added that same-day cancellations in the US are 20% more likely than in the EU.
Defending the proposal, then-Transportation Secretary Pete Buttigieg said that airlines received a $54 billion payout from taxpayer money during the pandemic, and now airlines should offer reciprocal protections.
The current DoT spokesperson told Business Insider that the best way to address flight delays is to “fix our broken air traffic control system,” which they blamed on the Biden Administration.
Airlines opposed the rule, arguing that it would be a cost burden. The APRA report said that the cost for airlines operating under EC261 to mitigate delays, which it estimates to be up to €1.73 ($2) per passenger, is less than what it would cost to pay out compensation.
A report from the consulting firm InterVISTAS USA and commissioned by A4A, however, said applying EC261-like compensation rules to the US would lead to increased fares, as airlines try to recoup costs.
Specifically, the report said it would result in a $5.2 billion annual cost to customers.
Airlines push for more deregulation
In May, the A4A lobbying group filed a 93-page request with the DoT, asking it to roll back several other consumer-focused rules.
One seeks to end the requirement for airlines to display the full price of a ticket and its add-ons up front, not on the final checkout page.
Another looks at eliminating family seating requirements, and another wants to jettison the Biden-era dashboard that shows airline promises for hotels and meals. The group spent about $5.7 million in 2024 on lobbying efforts.
Some consumer advocates argue that current Transportation Secretary Sean Duffy faces a conflict of interest regarding airline protections.
Before joining the Trump Administration, Duffy lobbied for a coalition representing Delta, American, and United Airlines, focusing on policies meant to shield carriers from additional federal regulation.
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