• The Trump administration is discontinuing a compensation plan for flight delays proposed during the Biden era.
• The plan would have required airlines to pay $200 to $775 based on delay lengths.
• Critics, including Democratic senators, label the withdrawal as a setback for consumer protections.
• The Transportation Department cites "unnecessary regulatory burdens" as the reason for the decision.
• No major U.S. airline currently guarantees cash compensation for significant delays.

The Trump administration has officially withdrawn a plan initiated under former President Joe Biden that would have required U.S. airlines to compensate passengers for flight delays. Announced on Friday by the U.S. Department of Transportation (USDOT), the proposal included provisions for airlines to pay between $200 to $300 for domestic delays lasting at least three hours and up to $775 for delays extending beyond that, which was first disclosed in September. The USDOT termed the plan as resulting in "unnecessary regulatory burdens" on airlines, arguing that it stifled competition in the industry, according to Reuters, SCMP, Al Jazeera, and CBS News.

In a letter last month, 18 Democratic senators urged the Trump administration to reconsider the withdrawal of the compensation plan, labeling it a “common-sense proposal” designed to hold airlines accountable for delays that financially burden families. The senators highlighted the emotional and economic strain that significant delays could impose, which includes costs for unexpected accommodations or rebooking flights. Despite these appeals, the USDOT reaffirmed that airlines in the U.S. are only mandated to refund customers for canceled flights, with no similar compensation required for delayed flights, according to Reuters, SCMP, Al Jazeera, and CBS News.

Airline compensation practices differ significantly from those in places like the European Union and Canada, where stricter compensation rules exist for delays. Currently, no major U.S. airline guarantees cash compensation for passengers facing significant flight disruptions. The Trump administration indicated that the decision to rescind the Biden-era plan aligns with its broader strategy to reduce regulatory burdens in the airline industry. It is also considering rescinding rules requiring airlines to disclose service fees with ticket costs along with revisiting definitions related to flight cancellations, according to Reuters, SCMP, Al Jazeera, and CBS News.