White House withdraws plan requiring airlines to pay passengers for major delays

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

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Image Source: Pete Marovich for The New York Times

In a surprise reversal, the White House announced Friday that it would withdraw a plan that would have required airlines to compensate passengers for major delays, a move that comes amid mounting criticism from consumer advocates and the travel industry alike.

senior White House official, speaking on condition of anonymity, said the administration determined that the proposed rule would impose “unintended consequences” on both carriers and travelers, particularly during peak travel seasons. The plan, which had been under development for months, aimed to standardize per-passenger compensation for significant flight disruptions caused by controllable factors, such as staffing shortages or air-traffic constraints.

The administration had argued that uniform compensation would protect consumers and incentivize better airline reliability. However, critics warned it could trigger higher ticket prices, reduced flight schedules, or complicated eligibility rules that would disproportionately affect budget carriers and international routes.

Consumer advocacy groups reacted with disappointment but urged calm, noting that airline delays remain a persistent problem for travelers. “Passengers deserve transparent remedies when their plans are upended by avoidable delays,” said Maria Chen, director of the National Consumer Aviation Coalition. “Today’s withdrawal signals that we must pursue a more workable approach that balances carrier sustainability with passenger rights.”

Airline industry representatives welcomed the development. In a statement, the Airlines Passenger Coalition cautioned against sudden, rigid mandates that could destabilize operations or reduce service to underserved markets. “We remain committed to working with policymakers on practical protections for customers, while maintaining a viable and transparent aviation system,” the group said.

Political observers suggest the reversal could reflect the broader political climate surrounding regulatory overreach and the upcoming midterm season. White House aides emphasized that the administration remains focused on consumer protections, hinting at potential future proposals that might address delays without imposing blanket compensation requirements.

Travelers are likely to see continued variability in flight schedules as carriers adapt to evolving conditions and regulatory considerations. The Transportation Department has not indicated whether it will pursue alternative remedies to alleviate the burden of major delays in the near term.