Have you ever arrived at an airport ready to board that plane when you get that dreaded notification that your flight has been delayed? Then, sitting on the tarmac, there seems to be a staffing issue, maintenance issue, or some other controllable issue, but now you are facing a 3-hour delay, missing your next flight. Yes, that happened to me just a few weeks ago, but now, with some regulatory changes, I may not be compensated, and neither will you.
In a move that has left consumer advocates reeling and airline executives celebrating, the Trump administration has officially scrapped a Biden-era proposal that would have required U.S. airlines to compensate passengers with cash for flight delays and cancellations. The decision eliminates what could have been a game-changing shift toward European-style passenger protections, leaving American travelers with some of the weakest delay compensation rights in the developed world.
The shelved regulation, announced in December 2024 during the final weeks of the Biden administration, would have mandated automatic cash payments to passengers when airlines caused significant flight disruptions. Under the proposed system, travelers would have received $200-$300 for domestic delays lasting three to six hours, $375-$525 for delays of six to nine hours, and up to $775 for delays exceeding nine hours.
A $775 Opportunity Lost
The proposal represented the most ambitious passenger rights initiative in U.S. aviation history. Unlike the current system, where airlines voluntarily commit to providing meals and hotel vouchers during controllable delays, the Biden plan would have created legally mandated compensation, similar to protections that have existed in Europe for nearly two decades.
“This was a proposed rule from the last full month of the Biden administration,” Nick Ewen, editorial director at The Points Guy, told Newsweek. “I think this is not at all surprising.”
The Department of Transportation justified the withdrawal by stating it would “faithfully implement all aviation consumer protection requirements mandated by Congress” while reconsidering “extra-statutory requirements” that went beyond congressional mandates. Airlines for America, the trade group representing major U.S. carriers, praised the decision, arguing the Biden plan would have driven up ticket prices and created unnecessary regulatory burden.
What Americans Actually Get: The Bare Minimum
So what compensation do American passengers actually receive when flights go sideways? The answer is surprisingly little, especially compared to global standards.
Currently, U.S. airlines are only legally required to provide automatic refunds for canceled flights or those with “significant changes”—defined as domestic delays of three hours or international delays of six hours, but only if passengers choose not to travel. These refunds must be processed within seven business days for credit card purchases and 20 calendar days for other payment methods.
Beyond refunds, American passengers rely on voluntary airline commitments tracked by the DOT’s consumer dashboard. Most major carriers have pledged to provide meals during lengthy delays, hotel accommodations for overnight disruptions, and rebooking at no extra cost, but only when the airline is at fault. These promises can be changed at the airline’s discretion and often come with vague implementation details.
For involuntary denied boarding due to overbooking, passengers can receive compensation ranging from $200 to $1,550, depending on ticket price and delay length, but this covers only a small fraction of flight disruptions.
How the World Does It: Europe Leads the Way
The contrast with international standards is stark. European Union passengers enjoy some of the world’s strongest flight delay protections under Regulation EU261, enacted in 2005. The system provides automatic cash compensation based on flight distance and delay duration:
- €250 ($275) for delays over three hours on flights under 1,500 kilometers
- €400 ($440) for delays over three hours on EU flights over 1,500km or international flights under 3,500km
- €600 ($660) for delays over three hours on international flights exceeding 3,500km
European protections apply to all flights departing EU airports or arriving on EU carriers, meaning Americans flying from European cities receive stronger protections than on their domestic routes. The system also requires airlines to provide immediate care, including meals, accommodation, and communication during delays.
The United Kingdom maintains similar protections post-Brexit, offering £210-£520 compensation for delays over three hours. Passengers can claim compensation up to six years after the incident in most EU countries.
Global Standards Put America to Shame
Other countries have followed Europe’s lead in protecting air travelers:
Brazil offers some of the world’s most generous protections under ANAC 400 regulations. Passengers can receive compensation up to €1,550 for delays over two hours, with no set maximum amounts. The system covers broader circumstances than European rules and allows up to five years to file claims.
Canada implemented comprehensive passenger rights in 2019, requiring compensation of CAD $125-$1,000 based on delay length and airline size. The system covers both large and small carriers with scaled requirements.
Turkey, Saudi Arabia, and other nations have adopted EU-style compensation frameworks, creating a global trend toward passenger protection that notably excludes the United States.
Even under the international Montreal Convention, which applies to most global flights, passengers can recover damages for delayed flights, including accommodation and meal costs, protections that go beyond what many U.S. domestic passengers receive.
The Real-World Impact
The scrapped compensation plan would have addressed a significant problem. According to Government Accountability Office data, flight cancellations from July 2021 through April 2022 affected over 15 million passengers, while delays impacted more than 116 million travelers. DOT data shows that over 60% of delays lasting three hours or longer were airline-caused in both 2022 and 2023.
Research suggests European-style compensation actually improves airline performance. Studies found that EU compensation requirements reduced both the likelihood and duration of flight delays by creating financial incentives for operational efficiency.
What Passengers Can Do
With federal compensation off the table, American travelers must rely on alternative protections:
Credit Card Benefits: Many travel credit cards offer trip delay insurance covering meals, accommodation, and incidental expenses during lengthy delays, even for weather-related disruptions that airlines won’t cover.
Travel Insurance: Comprehensive policies can provide broader coverage than airline commitments, including compensation for delays regardless of cause.
Know Your Rights: Understanding each airline’s voluntary commitments through the DOT dashboard helps passengers demand promised services during disruptions.
Documentation: Keeping receipts for delay-related expenses can support claims under airline policies or credit card benefits.
The Broader Implications
The Trump administration’s decision signals a broader retreat from Biden-era consumer protections. The DOT has indicated it may reconsider other regulations including family seating requirements, pricing transparency rules, and wheelchair handling standards, potentially rolling back years of progress in passenger rights.
This deregulatory approach puts the United States increasingly out of step with global aviation trends. While other countries strengthen passenger protections, America appears committed to maintaining an industry-friendly regulatory environment that prioritizes airline profits over traveler rights.
For American passengers facing the inevitable delays and cancellations that plague modern air travel, the message is clear: you’re largely on your own. While Europeans collect hundreds of euros for lengthy delays and Brazilians can claim over $1,500, Americans must settle for whatever voluntary gestures airlines decide to offer, if they choose to honor them at all.
If you are someone who travels quite a bit, just be prepared. Have a good travel credit card, travel insurance, and know the laws. With my delays and missed flights in mid-August, I was fortunate that Qantas, an Australian airline, decided to rebook my family’s flights on a later flight to a different city. American Airlines has been known to delay many flights, and mine was a good three-and-a-half-hour delay, but fortunately, we got to the place we wanted to go.