Airlines will no longer be required to compensate passengers for delays under new regulations from the Trump administration.

In a significant shift in air travel policy, the United States Department of Transportation has announced the withdrawal of a directive that aimed to provide compensation to passengers for flight delays. This move, positioned as a reduction of “unnecessary regulatory burdens,” reflects the government’s ongoing effort to streamline airline operations while balancing the needs of consumers. As the airline industry continues to recover from recent turbulence, the implications of this decision have raised concerns among travelers and advocates for passenger rights.

The United States Department of Transportation has officially withdrawn from a directive that would have required airlines to compensate passengers for flight delays. The White House announced this decision on Friday, following plans first disclosed back in September.

This compensation plan originated during the administration of former President Joe Biden, intending to mandate payments of 0 to 0 for domestic delays exceeding three hours, and up to 5 for longer, unspecified delays. However, the current Transportation Department, under the Trump administration, described the proposed rules as “unnecessary regulatory burdens.”

Last month, 18 Democratic senators urged the Trump administration to reconsider its decision to scrap the compensation plan, emphasizing that it was a common-sense proposal. Their letter highlighted the responsibility of airlines to mitigate unexpected costs imposed on families due to service failures, advocating for measures to support affected consumers.

While U.S. airlines are obligated to refund passengers for canceled flights, there are currently no legal requirements to compensate for delays. In stark contrast, countries like the European Union, Canada, Brazil, and the United Kingdom have established regulations ensuring that passengers receive compensation for significant flight disruptions. No major U.S. airline offers cash compensation for such delays.

The Transportation Department’s rationale for abandoning the compensation plan rests on the belief that this decision will allow airlines to compete based on the services and compensation they offer passengers, rather than being bound by federal minimum requirements that could increase operational costs.

In further regulatory developments, the Transportation Department is also considering rescinding Biden-era regulations mandating that airlines and ticket agents disclose service fees alongside airfares. This initiative is part of a broader effort to lessen the regulatory footprint on airlines and ticket agents, including clarifying definitions of what constitutes a flight cancellation that warrants ticket refunds, as well as reviewing rules on ticket pricing and advertising.

The department has yet to respond to inquiries about these developments. Additionally, efforts to contact Mayor Pete Buttigieg, who championed the policies now under review, went unanswered.

On Wall Street, airline stocks reflected a mixed performance, with most faltering in early trading but trending upward by midday. American Airlines fell by 1.2 percent, United Airlines by 1 percent, and Delta Airlines by 1.3 percent. JetBlue experienced a notable drop of 3.6 percent, while Southwest saw a minor decrease of 0.2 percent.

As the airline industry continues to navigate the aftermath of the recent U.S. government shutdown, which concluded on Wednesday, travelers still face numerous delays and cancellations. Current reports indicate over 1,000 flight delays and 615 cancellations on flights to, from, and within the United States, according to FlightAware, a global flight tracking platform.

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