The Trump Administration has withdrawn the Biden Administration’s proposed rule for airline passenger flight disruption compensation.
Since 2005, European Union (EU) airline rule 261 has been in effect. The rule requires airlines to provide compensation and assistance if the flight is disrupted. When the event passengers are denied boarding, their flight is canceled, or it suffers a long delay. In the United States, there is no similar protection for passengers when caused by the airlines.
In the US, there is no basic requirement for airlines to help their passengers defray the cost of meals and hotel stays after an extended delay. These include instances where a passenger can’t be accommodated on another flight until the next day or later.
The Biden Administration proposed an EU 261-like compensation. That includes care rules for air travelers who experience significant flight delays due to airline failures.
In December 2024, the Biden Department of Transportation (DOT) proposed that airlines provide cash compensation for flight cancellations and long delays caused by the airlines. They also proposed basic requirements for the airlines to care for their customers when they cause cancellations and long delays.
The Trump Administration has withdrawn the Biden Administration’s compensation and care rule for air travelers.
Last week, the Trump Administration posted an Advanced Notice of Proposed Rulemaking (ANPRM) stating that, “Consistent with the Department (DOT) and administration priorities, the Department plans to withdraw the ANPRM,” referring to the proposed Biden rules for airline passenger compensation and basic care when airlines cause flight disruptions.
The trade group, Airlines for America, which represents major US airlines, welcomed the news by the Trump administration, stating,
“We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority in the unsolved issues important to our customers.”
Apparently, the Trump Administration thinks it’s burdensome for airlines to compensate passengers for their flight disruption failures. However, it is not a problem for passengers to pay significant extra costs for themselves due to the airline failures.
Apparently, airlines compensate passengers when they cancel or seriously delay their flights due to maintenance problems. This also applies to staffing problems and/or computer system woes, which are overly burdensome for the airlines. However, this does not include the costs incurred by airline passengers. These include hotel stays, meals, extra transportation, and losses of fees and fares at their destination. The Trump Administration thinks that multi-billion-dollar airlines can’t afford to compensate and take care of their passengers. However, the passengers, many of whom are living from paycheck to paycheck, can easily afford the extra cost the airlines cause them to pay.
Before we look at what the Biden Department of Transportation actually proposed, let’s understand EU airline rule 261.
In general, in the EU, passengers with confirmed tickets that are checked in for their flight can obtain compensation and assistance under EU 261 for flight disruptions due to causes under airline control. For causes outside of their control, such as weather or terrorism, the airlines have no compensation requirements.
The exact compensation owed to air travelers is determined by both the length of the delay and the distance of the flight. Suppose a flight is delayed by a full day. In that case, passengers are also entitled to hotel accommodations if an overnight stay is necessary, as well as transportation between the airport and the hotel.
If a passenger is denied boarding, they are immediately eligible for compensation, reimbursement, rebooking, and care under the EU regulation. When a flight is canceled, passengers are entitled to rights, including care, compensation, reimbursement, and rerouting.
The Biden administration’s proposed rule was similar to EU 261 in many respects.
Their DOT rule would have required US airlines to compensate and care for passengers in the event of a significant controllable flight delay or cancellation. A controllable flight delay or cancellation was defined as one in which the airline could have reasonably prevented the delay or cancellation. Computer snafus, staffing problems, and mechanical issues were considered controllable. If a flight was disrupted by air traffic control problems, controller orders, or bad weather, the proposed regulation didn’t require the airlines to compensate their passengers.
Cash compensation to passengers for flight delays of three to six hours would have required airlines to pay at least $200 to each delayed passenger. If the flight delay exceeded nine hours, airlines would have been required to pay as much as $775 to each delayed passenger.
The proposed rule would have also codified meal vouchers, hotel room nights, and ground transportation to and from the airport.
With the proposed rule withdrawn, US travelers can only expect a refund for cancelled flights as long as they don’t rebook.
With the proposed Biden Administration rule being withdrawn, US air travelers can only expect a refund for their canceled flight. If due a cancellation refund, I strongly suggest that passengers contact their airline to make sure their airfare will be fully refunded in cash. Unless you want them to rebook you, tell them that you don’t want to rebook, you want cash. If you accept an alternative flight from the airline, you’re not entitled to a refund.
Sometimes airlines will offer meal and hotel vouchers when they cause significant flight delays or cancellations, but they’re not required to provide them.
Though not required, sometimes airlines will offer meal vouchers and hotel compensation when passengers are required to stay overnight before their delayed or rebooked flight, but don’t expect enough to eat a steak dinner or stay at a five-star hotel. Based on my own experience, be prepared to essentially pay for your own meals and hotel stay. A couple of years ago, I was given a hotel voucher for the worst fleabag hotel imaginable. I went elsewhere and had to pay for the hotel myself. My meal voucher was for $20 dollars to purchase both a dinner and breakfast. It didn’t pay for my modest dinner in Chicago.
There are other rule rollbacks for air travelers that are apparently being considered by the Trump administration. These rollbacks would be in line with the Trump administration’s priority to eliminate federal regulations that the administration considers wasteful and/or burdensome.
Here are just a few of the possible rules that the Trump administration may roll back that were put in place by the Biden administration:
Fee Transparency:
At this time, airlines must clearly display all baggage fees and other add-on fees during booking. Under the Trump administration, these fees may likely be buried in the booking process, making comparison shopping more difficult.
Customer Notification:
Currently, refund notifications must be sent via email, the airline’s app and text messaging. It’s possible that under the Trump Administration, the notifications could end.
Consumer Dashboards:
At this time, the Biden Administration dashboards comparing refund and cancellation policies of the airlines are being published. The Trump administration is unlikely to continue publishing them, based on the waste and burdensome statements.
Total Fare Advertising:
At this time, advertised airline fares are required to include taxes and fees. The Trump administration may permit airlines to show artificially low prices until checkout, like they did in their first Administration.
Family seating:
Currently, airlines are required to seat children with their parents at no additional cost. The Trump administration may end the requirement.
The Trump Administration’s priority is to eliminate regulations for airlines. They should also eliminate burdensome costs for air travelers due to airline failures.
Apparently, the current administration believes it’s burdensome for the airlines to compensate their passengers for the airlines’ failures. But it’s not burdensome for passengers to pay for the same failures of the airlines. These costs include what should never have been necessary expenditures for hotels, meals, and transportation. The Trump Administration should start thinking about air travelers, not just the airlines.
(Image: American Airlines A319 landing at Philadelphia International Airport. Copyright © 2018 NSL Photography. All Rights Reserved. All TDM and AI Training are Prohibited.)
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After many years working in corporate America as a chemical engineer, executive and eventually CFO of a multinational manufacturer, Ned founded a tech consulting company and later restarted NSL Photography, his photography business. Before entering the corporate world, Ned worked as a Public Health Engineer for the Philadelphia Department of Public Health. As a well known corporate, travel and wildlife photographer, Ned travels the world writing about travel and photography, as well as running photography workshops, seminars and photowalks. Visit Ned’s Photography Blog and Galleries.
