Feds Pull Plug on Airline Payouts for Delays and Cancellations
Published Date: 11/17/2025
Proposed Rule
Summary
The Department of Transportation is pulling back its plan to make airlines pay passengers for big delays and cancellations. This means no new rules forcing airlines to offer cash, free rebooking, or hotel stays for now. Travelers and airlines can breathe easy while the government focuses on cutting red tape starting November 17, 2025.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
Planned Airline Pay Rules Withdrawn
On November 17, 2025, the Department of Transportation withdrew its December 11, 2024 ANPRM and will not move forward now with new rules that would force airlines to give cash, free rebooking, hotel stays, or other mandatory compensation for significant flight delays and cancellations. The Department cited Executive Orders 14192 and 14219 and public comments — including airline estimates that costs could exceed $5 billion annually — as reasons for the withdrawal.
Wheelchair Rebooking Rule Remains in Place
The Department notes its 2024 Wheelchair Rule requires airlines to offer free rebooking on the next available flight of the same or a partner airline if a passenger's wheelchair or scooter is not loaded or does not fit on the scheduled flight. The Department has delayed enforcement of certain provisions at times, but this rebooking requirement remains a regulatory protection.
Statutory Reimbursement Policies Required — Limited DOT Power
The FAA Reauthorization Act of 2024 (section 512) requires air carriers to establish policies on reimbursement for lodging, transportation between lodging and the airport, and meal costs when a cancellation or significant delay is directly attributable to the carrier. The Department says that subsection 512(c) does not authorize DOT to require airlines to provide reimbursements or other compensation beyond establishing those policies.
Department Relies on Voluntary Airline Promises
The Department is continuing to rely on airlines' voluntary customer service commitments and its public Delay and Cancellation Dashboard rather than imposing new rules. The notice says the 10 largest U.S. carriers (covering more than 97% of domestic enplanements) guarantee a meal and free rebooking, and 9 of the 10 guarantee hotel accommodation and ground transportation for controllable overnight delays.
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