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Feds scrap proposal to supply money to airline passengers for flight disruptions

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Last updated: September 4, 2025 7:48 pm
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Feds scrap proposal to supply money to airline passengers for flight disruptions
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The Division of Transportation is dropping a proposed rule that may have required airways to supply money to passengers whose flights have been disrupted. 

The rule, which by no means went into impact, would have required carriers to offer compensation “to mitigate passenger inconveniences” for cancellations or delays that have been inside a service’s management. 

Reuters was the primary to report that the Transportation Division was shelving the proposal. 

The proposal was launched underneath President Biden after which Transportation Secretary Pete Buttigieg. It might’ve required airways to pay as much as $300 for home delays of three to 6 hours and as much as $775 for flight delays lasting not less than 9 hours. 

“The flexibility of airways to decide on the providers that they supply to mitigate passenger inconveniences ensuing from flight disruptions underneath present U.S. regulation contrasts with client safety regimes in different jurisdiction…” the proposed rule states. 

Though airways assure rebooking, plus meals and lodging vouchers, for purchasers affected by flight delays and cancellations, none assure money compensation for such inconveniences.  

Airways have been against the proposed regulation when it was introduced in December. On the time, Airways for America, a commerce group representing that nation’s carriers, mentioned it might “drive up ticket costs, make air journey much less accessible for price-sensitive vacationers and negatively affect service operations.”

The group on Thursday cheered the Transportation Division’s resolution to drop the compensation proposal.

“We’re inspired by this Division of Transportation reviewing pointless and burdensome rules that exceed its authority and do not remedy points necessary to our prospects,” Airways for America mentioned in a press release. “We look ahead to working with DOT on implementing President Trump’s deregulatory agenda.” 

Extra from CBS Information

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch overlaying small enterprise, office, well being care, client spending and private finance matters. She recurrently seems on CBS Information 24/7 to debate her reporting.

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