Delta Unites with SkyWest, Alaska, Hawaiian, Spirit, American and Others to Hammer Passengers Privileges as US Government Shifting Power to Airlines with New Action on Refund and Compensation Rule

Published on November 22, 2025

Delta, SkyWest, Alaska, Hawaiian, Spirit, American, and other airlines are backing the US government’s freeze on the refund and compensation rule, shifting power to airlines and reducing passenger privileges. This significant move comes as part of a broader deregulatory strategy, which empowers airlines to determine how they handle compensation for delays and cancellations. The decision eliminates the proposed requirement for airlines to automatically provide cash compensation for disruptions caused by the airline’s fault, leaving passengers reliant on each carrier’s discretion. With this shift, airlines are now in control, setting policies that could leave passengers uncertain about their rights and compensation, marking a notable departure from the previous attempt to standardize protections.

A Bold Move by the US Government

The decision to freeze the proposed cash compensation rule is part of a broader deregulatory agenda led by the Department of Transportation (DOT) under the Trump administration. The rule, which had been introduced during the Biden administration, was designed to provide passengers with compensation of up to $775 in cash if their flights were significantly delayed or canceled due to the airline’s fault. Under the proposed rule, airlines would have been required to pay passengers for flight disruptions that were within their control, such as mechanical issues or staffing shortages.

However, the Trump administration’s DOT has argued that implementing such a rule could increase operational costs for airlines, which in turn would likely lead to higher ticket prices. The administration’s stance is that the free market, rather than regulatory measures, should determine the level of compensation passengers are entitled to during disruptions. This decision aligns with a broader deregulatory approach that has been pursued by the administration in various sectors, not just aviation.

Airline Responses to the Cash Compensation Rule Freeze

SkyWest Airlines: SkyWest Airlines reimburses reasonable toiletry and essential items during delays when passengers are without their belongings. However, there is no official policy guaranteeing cash compensation for delays or cancellations, and the airline is not listed in the DOT’s major carrier commitments for automatic cash compensation.

Alaska Airlines: Alaska Airlines provides rebooking on the same carrier and partner airlines in the event of delays or cancellations. They also offer meal vouchers and hotel accommodation for overnight disruptions caused by the airline. However, Alaska Airlines does not commit to offering cash compensation for delays or cancellations, meaning passengers may not receive monetary reimbursement for significant disruptions. The airline’s policy is designed to manage passenger inconvenience through rebooking and other services without a guaranteed cash payout .

Hawaiian Airlines: Similar to Alaska Airlines, Hawaiian Airlines commits to rebooking passengers on the same or a partner airline and providing meal vouchers for delays. They also offer hotel accommodation and transport if a disruption leads to an overnight stay. However, Hawaiian Airlines does not guarantee cash compensation in case of delays or cancellations. Passengers affected by flight disruptions will receive assistance, but they won’t automatically be entitled to monetary compensation .

Spirit Airlines: Spirit Airlines also commits to rebooking passengers on the same carrier and offering meal vouchers for significant delays or cancellations. However, Spirit Airlines does not commit to cash compensation. The airline provides limited amenities beyond rebooking and meal vouchers, and passengers are not guaranteed financial compensation for delays or cancellations. Spirit Airlines’ policy is focused on providing rebooking options and basic services rather than compensating passengers with cash .

American Airlines: American Airlines supported the freeze, stating mandatory compensation for delays could create operational challenges, especially during peak travel or uncontrollable disruptions like weather. The airline emphasized efficient resource allocation and competitive pricing, while ensuring refunds and rebooking for passengers.

Delta Air Lines: Delta’s customer service plan includes rebooking and accommodation for significant delays or cancellations, but cash compensation is not automatically provided. The airline prioritizes customer support through rebooking and amenities, but does not commit to direct financial compensation.

JetBlue Airways: JetBlue announced that, starting in 2026, compensation for disruptions will be given as points rather than cash. This approach departs from the proposed cash compensation rule, aligning with their focus on alternative rewards instead of cash payments.

Impact on Passengers: What Has Changed?

• Shift in Disruption Handling: The freeze on the cash compensation rule means passengers are no longer guaranteed compensation for disruptions like missed connections or delays exceeding certain thresholds, which would have previously been provided in the form of cash or vouchers.
• Current Compensation Policies: Passengers are now subject to the airline’s existing policies, with no guaranteed compensation beyond refunds for canceled flights and rebooking for significant delays.
• Airline Discretion: The responsibility for additional compensation has shifted to the airline’s discretion. If delays are due to uncontrollable factors like weather, passengers may receive meal vouchers or accommodations, but cash compensation will be offered on a case-by-case basis.
• Dependence on Airline Goodwill: Passengers experiencing delays or cancellations caused by the airline’s fault may have to rely on the airline’s goodwill for additional compensation, with policies varying from one carrier to another.

A Shift Toward Airline Control

The freeze on the cash compensation rule shifts control to airlines, allowing them to decide how to handle disruptions and compensation. While this offers flexibility, critics argue it undermines consumer protections, leaving passengers uncertain about their rights. Without clear guidelines, airlines may offer inconsistent compensation policies, resulting in less transparency and accountability. Consumer advocacy groups express concern that the freeze could disadvantage travelers, especially when delays or cancellations are caused by the airline’s fault, as compensation policies will vary from one carrier to another.

What’s Next for Air Travel?

With the freeze on the cash compensation rule, airlines now have more flexibility in setting their own compensation policies, leading to potential confusion and frustration for passengers. While many will continue offering accommodations and rebooking, the lack of standardized rules may leave passengers uncertain about their rights. The DOT is considering other regulatory changes, but questions remain about future protections. As the U.S. government takes a hands-off approach, passengers will need to be proactive in understanding airline policies, as compensation offerings will vary significantly between carriers.

The Global Comparison: US vs. Europe

The freeze on the cash compensation rule highlights the disparity between U.S. and European passenger rights. In the EU, Regulation (EC) No 261/2004 ensures passengers receive up to €600 for significant delays or cancellations caused by airlines. U.S. travelers, however, must often rely on airline goodwill for compensation beyond refunds or rebooking. The freeze exacerbates this divide, leaving U.S. passengers without the same level of protection as their European counterparts, raising concerns about fairness in the global travel industry.

Delta, SkyWest, Alaska, Hawaiian, Spirit, American, and other other airlines are backing US government’s freeze on refund and compensation rule, shifting power to airlines and reducing passenger privileges.

Conclusion

Delta, SkyWest, Alaska, Hawaiian, Spirit, American, and other airlines supporting the US government’s freeze on the refund and compensation rule have shifted power to airlines, diminishing passenger privileges. By backing this decision, airlines now have full control over compensation policies for delays and cancellations, with no mandatory cash payouts. This move reduces passenger protections, leaving travelers uncertain about their rights during disruptions. While offering airlines flexibility, it ultimately weakens the consistency of compensation, reshaping the airline-passenger dynamic and reducing guarantees for passengers affected by flight issues.