Trump Administration Moves to Scrap Flight Delay Compensation Rules.

The Trump administration is withdrawing rules requiring airlines to compensate passengers and provide free rebookings for flight delays and cancellations caused by non-weather-related issues. The Biden administration's proposal called for airlines to pay at least $200 for domestic delays lasting three hours or more. Airlines for America praised the move, citing unnecessary and burdensome regulations.

The Trump administration has withdrawn a proposed rule that would have required airlines to compensate passengers for flight disruptions caused by non-weather-related issues. The rule, introduced under the Biden administration, aimed to provide cash compensation to passengers whose flights were delayed or canceled due to circumstances within the airline's control. The proposed rule specified that airlines should pay up to $300 for domestic delays of three to six hours and up to $775 for delays lasting at least nine hours [2].

The Department of Transportation, under the Trump administration, has decided to shelve this proposal. Airlines for America, a trade group representing major U.S. carriers, had previously expressed opposition to the rule, stating that it would "drive up ticket prices, make air travel less accessible for price-sensitive travelers, and negatively impact carrier operations" [2].

The withdrawal of this rule follows the Trump administration's broader deregulatory agenda. The Department of Transportation has been reviewing and potentially rolling back various regulations implemented under the previous administration. This move has been praised by Airlines for America, which is looking forward to collaborating with the Department of Transportation on further deregulatory efforts [2].

In related news, Allegiant Travel Company (ALGT) reported a double-digit increase in traffic for July 2025. Delta Air Lines (DAL) announced plans to add two new routes to European destinations from Boston, aiming to bolster its European network. Frontier Airlines (ULCC) plans to introduce 20 new routes from late fall, focusing on the ultra-low-cost segment. Additionally, Southwest Airlines (LUV) provided an update on its expansion plans [3].

References:
[1] https://www.reuters.com/world/us/trump-administration-unlawfully-cut-harvards-funding-us-judge-rules-2025-09-03/
[2] https://www.cbsnews.com/news/airlines-flight-disruption-transportation-department-cash-refund/
[3] https://www.nasdaq.com/articles/airline-stock-roundup-algts-impressive-july-traffic-dal-luv-focus