Trump Administration Changes How Airlines Respond to Cancellations

The Trump administration is dropping a Biden-era rule requiring airlines to compensate passengers for canceled flights and cover travelers’ expenses for delays or cancellations caused by the airlines.

The Biden administration’s proposed rule would have guaranteed passengers $200 to $775 for disruptions under the airline’s control. Passengers would have also been entitled to free meals, lodging, and rebookings.

In a regulatory notice, President Donald Trump’s Office of Information and Regulatory Affairs announced plans to withdraw the proposal.

The office said the decision is “consistent with department and administration priorities.”

Airlines had said the rule would drive up operating costs and ticket prices.