Trump admin ditches Biden-era plan to make airlines pay compensation for flight disruptions

The Trump administration said Thursday it is abandoning a Biden-era plan that sought to require airlines to compensate stranded passengers with cash, lodging and meals for flight cancellations or changes caused by a carrier.

The proposed rule would have aligned U.S. policy more closely with European airline consumer protections. It was proposed last December in the final weeks of then-President Joe Biden’s administration, leaving its fate in the hands of his Republican successor.

In a document posted Thursday, President Donald Trump’s Transportation Department said its plan to scrap the proposed rule was “consistent with Department and administration priorities.”

Industry trade group Airlines for America, a vocal critic of the proposal, said it would have driven up ticket prices for consumers.

“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 Thursday in a statement.

The proposed rule sought compensation starting at $200 when a flight is canceled or significantly delayed because of a mechanical problem with the plane or an airline computer outage. Compensation as high as $775 was proposed for delays of nine hours or more.

Airlines already promise some level of customer service when they cause flight cancellations or severe delays, but passengers usually have to ask for help at the airport, and airline promises don’t carry the weight of federal rules.

Biden’s Transportation Department was also considering free rebooking on the next available flight, including flights on rival airlines, as well as meals and lodging when passengers are stranded overnight. Many of the largest U.S. airlines already promise that kind of help when a delay or cancellation is their fault.