A New Airline Policy Change Could Spell Disaster For US Travelers

Travelers hoping for payouts under former President Joe Biden's 2023 proposal on flight delay compensation will be left disappointed: The Donald Trump administration announced on Friday, September 5, 2025, that it is withdrawing the initiative. The original proposal would have required airlines to compensate passengers between $200 and $775 (subject to the length of delay), and provide complimentary meals, lodging, and rebookings when disruptions were considered under the airline's control, including mechanical issues. Although popular with consumers, the proposal had not yet taken effect and faced strong opposition from airlines, which warned it would increase operating costs and raise ticket prices.

The policy change was announced in a brief regulatory notice by the Office of Information and Regulatory Affairs. In addition to this, the Trump administration signaled it may roll back other Biden-era rules, such as the requirement that airlines and ticket sellers disclose service fees upfront alongside fares — a policy intended to protect consumers from hidden charges.

This announcement follows a series of airline-industry issues, including constant delays at JFK and LaGuardia airports, involuntary seat downgrades, and a general decline in the airport experience for passengers. According to Newsweek, there were more than 66,000 complaints against the 10 largest U.S. airlines in 2024, a nearly 9% increase over the previous year.

Because the Biden administration's proposal had yet to be implemented, nothing will change in the short term. Under current regulations set by the U.S. Department of Transportation, consumers are entitled to a refund if the airline cancels a flight. However, when it comes to delays, they may not be entitled to any compensation, regardless of the length.

Former Biden economic adviser Bharat Ramamurti described the recent announcement on X as a "slap in the face for air travelers." He added: "This rule would not only have put real cash back in your hands for badly delayed or cancelled flights, but would have resulted in far fewer delayed and cancelled flights in the first place."

Airlines for America, the trade association that represents carriers including American, Delta, and United, told The Independent it is "encouraged" that the administration is reviewing "unnecessary and burdensome regulations that exceed its authority and don't solve issues important to our customers." The group noted: "We look forward to working with DOT on implementing President Trump's deregulatory agenda."