As the winter travel season approaches, American airline passengers are once again bracing for the unpredictable: weather disruptions, technical glitches, and staffing shortages that can turn holiday journeys into marathon ordeals. Yet, a recent move by federal regulators has shifted the landscape of passenger rights in the United States, drawing sharp contrasts with protections offered in Europe and sparking debate among travelers, airlines, and consumer advocates alike.
On November 14, 2025, the Department of Transportation (DOT) officially withdrew a Biden-era proposal that would have required airlines to pay cash compensation to passengers for lengthy, carrier-caused flight delays—mirroring the European Union’s well-known EC261 law. According to Business Insider, the scrapped rule would have entitled travelers to up to $525 for domestic delays lasting between three and nine hours, and $750 to $775 for delays exceeding nine hours, plus reimbursement for meals, lodging, and transportation when the airline was at fault. The rationale? To hold airlines accountable and ease the financial pain of missed connections, lost vacation days, and hours spent stranded in terminals.
The now-defunct proposal was modeled closely after the EU’s Air Passenger Rights Regulation, which since 2004 has guaranteed compensation of up to about $700 for delays of three hours or more. European passengers have come to expect these payments as a matter of course, and data suggests the policy works: an October 2025 study by the Association of Passenger Rights Advocates (APRA) found that flights under EC261 are 70% less likely to be delayed over three hours compared to those in the US, and same-day cancellations are 20% more likely stateside.
Consumer advocates in the US had championed the proposed rule, arguing it would force airlines to improve their on-time performance and offer real relief to travelers. Pete Buttigieg, then-Transportation Secretary, defended the plan by pointing out that airlines received $54 billion in taxpayer-funded aid during the COVID-19 pandemic, telling Business Insider that “airlines should offer reciprocal protections.”
But the proposal faced fierce resistance from the airline industry. Airlines for America (A4A), the main lobbying group for major US carriers, argued that mandatory compensation would impose significant costs and ultimately lead to higher fares for customers. In a statement to Business Insider, A4A said its members “compete rigorously to provide quality service” and already offer “automatic refunds for significant delays and cancellations if a passenger chooses not to be rebooked,” alongside “competitive policies regarding reimbursements for food, transportation, and lodging for cancellations and significant delays within a carrier’s control.” American Airlines and Delta Air Lines deferred to A4A’s position, while United Airlines declined to comment.
The financial stakes are high. A report by consulting firm InterVISTAS USA, commissioned by A4A, estimated that adopting EC261-style compensation in the US would saddle airlines with $5.2 billion in additional annual costs—expenses they say would be passed on to consumers. In contrast, APRA’s own analysis suggested the cost of mitigating delays under the European system is less than $2 per passenger.
While the battle over cash compensation has ended—at least for now—travelers still enjoy significant federal protections thanks to new rules enacted by the DOT in October 2024. As reported by Condé Nast Traveler, these regulations require any airline flying to, from, or within the US to provide automatic cash refunds for flights that are canceled or significantly changed for any reason, including weather and other uncontrollable factors. This entitlement is triggered only if passengers refuse rebooking or alternative compensation, such as travel vouchers.
For the first time, federal law now clearly defines what constitutes a “significant change” to a flight: a delay of more than three hours domestically or six hours internationally, changes to departure or arrival airports, increased connections, downgrades in service class, or less accessible connections for disabled passengers. Airlines must issue refunds automatically—without passengers having to request them—within seven business days for credit card payments and within 20 days for other forms of payment. Refunds cover the full ticket price, including taxes and fees, minus any portion already used.
The rules go further. Passengers can claim refunds for baggage fees if their checked luggage is not delivered within 12 hours of a domestic flight or 15 to 30 hours for international journeys, depending on the route. If travelers paid for in-flight services like seat selection or Wi-Fi and did not receive them, those charges must also be refunded. And in a nod to the lessons of the pandemic, travelers who cannot fly due to a serious communicable disease are entitled to a travel voucher or credit valid for at least five years, provided they submit appropriate documentation.
Despite these protections, confusion remains. Airlines are required to notify affected passengers of their rights, but as Eric Napoli, chief legal officer at AirHelp, told Condé Nast Traveler, “Be aware that even if the airlines may offer you a voucher or air miles, you are entitled to your money back. Always request cash compensation.” Napoli recommends that travelers document every step—saving messages, receipts, and notifications—to support any claims for refunds or additional compensation.
What about support during delays and cancellations? While the withdrawn compensation proposal would have enshrined requirements for meals, hotel stays, and ground transportation, these remain voluntary for US airlines. Most major carriers—including Alaska Airlines, American Airlines, Delta Air Lines, JetBlue, Southwest, and United—do offer meal vouchers, hotel accommodations, and rebooking on other flights during significant delays or overnight disruptions, as detailed on the DOT’s consumer dashboard and in customer service plans. Some, like Southwest and JetBlue, even provide travel vouchers or frequent flier points for delays of three hours or more. However, there is no federal mandate for cash compensation beyond the automatic refunds described above.
Behind the scenes, the airline industry continues to push for deregulation. In May 2025, A4A filed a sweeping 93-page request with the DOT seeking to roll back several consumer-focused rules—including requirements for upfront price disclosure, family seating, and the Biden-era dashboard that publicizes airline commitments to delayed passengers. According to Business Insider, the group spent about $5.7 million on lobbying in 2024 alone. Meanwhile, some consumer advocates have raised concerns about potential conflicts of interest for current Transportation Secretary Sean Duffy, who previously lobbied on behalf of Delta, American, and United Airlines.
As the debate over passenger rights rages on, one thing is clear: US travelers must stay informed and proactive. While federal rules guarantee automatic refunds for significant disruptions, airlines are not required to offer the same level of compensation as their European counterparts. Knowing your rights—and insisting on them—remains the best defense against the chaos of modern air travel.
