WASHINGTON — When a flight originating in the European Union is canceled or delayed for reasons within an airline’s control, travelers can expect cash in hand — between €250 and €600 (about $300 to $700) — thanks to rules that have stood since 2005. In the United States, however, a Trump-era decision to abandon similar protections has left U.S. passengers with no statutory right to compensation, underscoring a stark trans-Atlantic divide.
Europe’s Robust Passenger Rights
The European Union’s policy, in place for nearly two decades, does more than soothe travel inconveniences; it incentivizes punctuality. Under the scheme, amounts are tiered by both distance and delay length, guaranteeing that “passengers don’t bear the full burden of delayed travel.” U.S. travelers who have experienced an EU delay often speak of the straightforwardness of filing a claim and having dollars (or euros) credited directly to a bank account.
The Proposed U.S. Rule That Never Took Off
In stark contrast, the United States currently mandates only ticket refunds for canceled flights, leaving any further goodwill strictly voluntary. That status quo was set to change. “In May 2023, President Biden announced that his administration was proposing a new rule that would require all airlines to compensate passengers for significantly delayed or canceled flights.” The draft regulation, formally issued in December 2024, promised payments between $200 and $775 for airline-caused disruptions.
Such protections would have mattered to hundreds of thousands of travelers. In 2023 alone, “93,897 domestic flights were canceled and 95,024 were delayed more than three hours.” And airlines, the proposal’s authors argued, could shoulder the bill. Delta, for instance, “recorded a $2.1 billion profit” in the second quarter of 2025, while 12-month figures showed Delta at $4.5 billion, United at $3.3 billion, American at $567 million, and Southwest at $392 million. These earnings follow the $62 billion in taxpayer-funded pandemic bailouts, “the bulk of that money will never be repaid.”
Rule Withdrawn With Little Fanfare
Yet “last week, the Trump administration quietly canceled plans to compensate U.S. passengers for delays and cancellations.” The only public sign: a short Federal Register entry noting the proposal’s withdrawal “[c]onsistent with Department and administration priorities.” A Department of Transportation spokesperson stated, Some of the rules proposed or adopted by the previous administration went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.
Who Lobbied Against Cash Payouts
The retreat did not happen in a vacuum. Airlines for America (A4A) — which represents Alaska, American, Delta, JetBlue, Southwest, United and Hawaiian airlines — applauded the reversal. According to A4A, We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers.
The lobbying push intensified after former congressman Sean Duffy (R-Wis.) became Transportation secretary. “In 2020, Duffy was hired as a lobbyist for The Partnership for Open and Fair Skies,” a coalition featuring American, Delta and United. His firm, BGR Government Affairs, collected $50,000 in its first three months on the job. Confirmation hearings failed to probe “his longstanding ties to the airline industry or his vision on consumer protection,” and he was ultimately confirmed 77-22.
Power Players and Price Tags
Even with an industry ally at the helm, carriers “left nothing to chance.” On Feb. 10, 2025, A4A hired Brian Ballard, widely reported as the lobbyist with “the most influence over Trump and his administration.” Compensation: $70,000 every three months. United followed in March 2025, retaining Ballard Partners for $90,000 per quarter. Adding political capital, Delta and United each donated $1 million to Trump’s inauguration.
Airline executives were publicly effusive. Delta CEO Ed Bastian called Trump a “breath of fresh air
,” lauding promises to curb “overreach our industry has experienced over the past four years.” United CEO Scott Kirby said tariffs that rattled other sectors signaled Trump’s “genuine desire to make things better for middle-class Americans
,” urging skeptics to “take a breath.” Southwest chief Robert Jordan voiced hope that the new DOT would be “a little less aggressive in terms of regulating or rule-making
.”
An April letter from A4A to DOT offered unvarnished praise: We write to share our appreciation and support of President Trump’s deregulatory agenda and directives.
The group contended that the Biden-Buttigieg DOT “issued overreaching rules regarding airline refunds
,” alleging such measures “do not benefit passengers, whose primary objective is to get to their destination, not get refunds.
”
Implications for U.S. Travelers
For the foreseeable future, the absence of federal cash compensation means flyers must rely on existing airline policies and travel insurance. No major U.S. carrier offers automatic cash payouts for delays or cancellations. The Department of Transportation’s Customer Service Dashboard identifies which airlines provide voucher meals or hotel rooms, but none list direct monetary payments comparable to EU rules.
What Travelers Should Know
Understanding the gap between U.S. and EU standards is essential when planning itineraries that include both regions. A disrupted flight departing Berlin or Barcelona can result in hundreds of euros; a similar delay leaving Boston or Boise likely yields only rebooking or a voucher.
Tips for Travelers on Delays and Cancellations
- Check the DOT Dashboard: Before booking, compare each carrier’s posted promises for meals, hotel stays and rebooking help during controllable delays.
- Know Your Refund Rights: Even in the United States, if an airline cancels a flight, it must refund the ticket price. Insist on a refund rather than a voucher if that suits your plans.
- Consider Travel Insurance: Policies that include “trip interruption” coverage may reimburse hotels or alternative transportation when flights go awry.
- Document Everything: Keep boarding passes, delay notifications and receipts. Should rules evolve — or if a class action emerges — documentation is critical.
- For EU Departures, Claim What’s Yours: If your itinerary originates in the EU, file an EU 261 claim directly with the airline or through reputable claim services.
- Stay Informed on Policy Shifts: Advocacy groups continue pressing for U.S. compensation rules. Register for alerts from consumer-rights organizations so you know if the landscape changes.
The Road Ahead
The withdrawal of the proposed compensation framework leaves American travelers at the mercy of airline goodwill and market forces. Whether a future administration revisits cash payouts remains to be seen, but the intense — and expensive — lobbying described above signals carriers will fight vigorously. Until then, savvy trip-planning and awareness of existing rights remain travelers’ best defenses against schedule-wrecking delays.
— Source: News story surfaced on EIN Presswire
