US airlines urge Donald Trump administration to scrap Joe Biden’s compensation plan, warn of fare hikes

A trade group representing major airlines has urged Donald Trump's Department of Transportation (DoT) to halt its review of cash compensation for delayed passengers.

Airlines for America (A4A), a trade association representing 10 major carriers, including Delta, American Airlines, and United, submitted a letter on Monday requesting an end to the review.

The DoT did not respond when asked for comment.

Joe Biden administration initiated the review

The review was launched under Joe Biden’s administration, which has made multiple attempts to introduce new regulations aimed at strengthening passenger rights.

Commencing in December 2024, the review seeks public opinion on whether passengers should receive cash compensation for delays caused by airlines.

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The proposed compensation structure includes:

$200 to $300 for domestic flight delays of at least three hours.

$375 to $525 for delays of six hours.

$750 to $775 for delays of nine hours or more.

Similar regulations are already in place in Canada and Europe.

In April, the administration mandated that airlines must promptly issue automatic cash refunds to passengers when due. Then, in January 2025, the DoT fined JetBlue $2 million for repeated delays.

A4A warns of rising ticket prices and cancellations

A4A argues that stricter regulations could lead to higher ticket prices and increased flight cancellations. In its letter, the group stated that airlines do not need additional incentives to deliver quality service.

The letter also added that A4A member airlines already offer automatic refunds if passengers choose not to rebook. For those who rebook at no extra cost, airlines provide meals, cash or meal vouchers, hotel stays, and/or ground transportation.

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In addition, A4A contended that the proposed regulations would exceed the Department for Transportation’s statutory authority.

FAQs

1. Which airlines are represented by Airlines for America (A4A)?
A4A represents major carriers, including American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, Alaska Airlines, JetBlue Airways, Hawaiian Airlines, FedEx Express, SkyWest Airlines, Atlas Air, Spirit Airlines, Allegiant Air, Envoy Air, and Mesa Air Group.


2. What is the role of the Department of Transportation?
The United States Department of Transportation (DoT) oversees and regulates the country's transportation systems, including air, rail, road, and maritime transport.