Major airlines urge Trump administration to abandon passenger compensation review (updated)
11/02/2025 17:15
(Adds details, background in paragraphs 4-10)
By David Shepardson
WASHINGTON, Feb 11 (Reuters) - Major U.S. airlines on
Tuesday asked the U.S. Transportation Department to abandon a
review launched by the Biden administration over whether
carriers should be required to pay passengers compensation over
flight disruptions.
Airlines for America, a trade group representing American
Airlines AAL.O , Delta Air Lines DAL.N , United Airlines
UAL.O , and others, urged the Trump administration to end the
review launched in December to take comments on whether airlines
in the United States should provide cash to compensate for
carrier-caused disruptions like they are required to do in the
European Union and Canada.
"Airlines do not need further incentive to provide quality
service," the group wrote, arguing that USDOT lacks legal
authority and that the requirement would drastically boost
airlines' costs and hike ticket prices.
The International Air Transport Association representing
airlines worldwide separately criticized the idea saying
required compensation programs "have become wealth transfer
tools that have cost airlines billions of dollars without any
meaningful reduction in flight disruptions."
Spirit Airlines said the idea is so extreme "it might
encourage carriers to re-evaluate when they proceed with
flights that should have been further delayed or canceled when
potential safety related concerns exist."
USDOT in December sought comment on whether airlines should
be required to pay $200-$300 for domestic delays of at least
three hours, $375-$525 for six-hour delays, and $750-$775 for
nine-hour delays.
Then-Transportation Secretary Pete Buttigieg said in
December that compensation rules for delays "would change the
economic incentive in a way that motivates airlines to do more."
In May 2023, President Joe Biden said his administration
would within months write rules requiring airlines to compensate
passengers for disrupted flights.
Airlines must refund passengers for canceled flights, but
are not required to compensate customers for delays.
Major carriers have committed to paying for meals, hotel
stays and other expenses when they cause significant flight
disruptions.
Last month, a U.S. court blocked the Biden administration's
2024 rule requiring upfront disclosure of airline service fees,
saying USDOT had not complied with procedural rules.
(Reporting by David Shepardson
Editing by Bill Berkrot)
((David.Shepardson@thomsonreuters.com; 2028988324;))