USA scraps cash payments for delayed, cancelled flights
The consumer protection laws would have covered all airlines flying to and from the USA.
By Staff Writers, September 5 2025
Airlines flying to and from the USA, as well as those making domestic flights within the US, no longer face the prospect of paying cash compensation to passengers when those flights are delayed or cancelled.
Under plans put in motion by the President Biden administration, airlines would have been required to pay travellers US$200-$300 (AU$300-460) for domestic delays of at least three hours, and up to US$775 (AU$1,190) for longer delays.
Set refunds would also have been triggered by delayed baggage, and services paid for but not delivered, such as seat selection, or when travellers were downgraded to a lower cabin than they booked.
However, the Trump administration has this week axed the proposed consumer protection laws, describing the move as “consistent with department and administration priorities.”
As reported by Reuters, the US Department of Transport is also considering dropping another Biden consumer protection initiative requiring that airlines and ticket agents disclose service fees alongside airfares, to help consumers avoid unnecessary or unexpected fees.
Also on the table: changing the definition of a flight cancellation under which travellers are entitled to a refund on their ticket.
US airlines predictably welcomed the news, with Washington-based industry trade and lobby group Airlines for America saying Biden's cash compensation plan would have raised ticket prices.
“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 group said.
Also read: How to claim compensation for delayed or cancelled Qantas flights from London, Paris or Rome
24 Oct 2010
Total posts 2582
We are heavily moderating comments posted under this article, because Executive Traveller is not the place for getting into political argy-bargy. If you want to whinge or whine about Presidents Trump or Biden, take it elsewhere.
Qantas - Qantas Frequent Flyer
28 Oct 2011
Total posts 488
I'm intrigued as to why people are downvoting this??
24 Aug 2011
Total posts 1280
That's why the airlines employ lobbyists in Washington. It is disappointing that there may be a wind back of disclosure of unexpected fees.
Visiting the US is already annoying enough given the prices displayed on most goods and services rarely include federal, state and local taxes and then there are the dreaded tips.
20 Nov 2015
Total posts 606
I don't think anybody should be surprised at this, I just hope the proposed Australian laws don't get watered down by local lobbying.
Qantas - Qantas Frequent Flyer
09 Jun 2017
Total posts 95
Don’t need lobbyists in Australia. Chairman’s and Beyond Lounges provide enough influence.
Qantas - Qantas Frequent Flyer
28 Oct 2011
Total posts 488
The additional fees should absolutely be disclosed clearly, so that's a loss. But I'm pleased that the financial "penalty"/"compensation" for late flights has been scrapped - airlines just raise their ticket prices to recoup the fee, so the customer pays it in the end anyway.
05 Dec 2017
Total posts 23
Given Australia has approximately zero compensation or other bare minimum requirements to hold airlines to account for passengers (see: "Refer to your airlines compensation scheme"), I imagine Virgin and Qantas will do everything in their powers to keep it that way. Here's the template.
QF
11 Jul 2014
Total posts 1090
There has to been some type of consumer protection!!! Like the story I was told yesterday about an Australian carrier, people turned up at the airport, flight was cancelled, they got a flight credit but no accommodation and no assistance to get another flight home. They then had to pay unreasonable prices to get home.
23 Oct 2019
Total posts 10
Shocking. Flew United yesterday LAX-EWR - arrived 7 hours late (4am instead of 9pm), bags took another 90 mins once on the ground - zero response from the airline not an email or a measly voucher even when you're Premier Platinum.
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