New U.S. Legislation Seeks Cash Compensation for Airline Delays, Aligning with International Travel Protection Standards

Published on December 5, 2025

In an effort to strengthen passenger protections and hold airlines accountable for delays, a group of 15 Democratic senators has introduced new legislation that would require airlines to compensate passengers when their flights experience significant delays. This bill, introduced on Thursday, aims to bring U.S. airline compensation regulations in line with those in the European Union and Canada. Under the proposal, passengers would be entitled to cash compensation for delays exceeding three hours, with compensation starting at $300. For delays exceeding six hours, passengers would receive at least $600.

Holding Airlines Accountable for Delays and Cancellations

The new legislation, spearheaded by Senators Mark Kelly, Ed Markey, and Richard Blumenthal, seeks to ensure that airlines are held accountable for the inconvenience and financial burden caused by significant delays and cancellations. Currently, U.S. airlines are required to refund passengers for canceled flights but are not obligated to compensate for delays. This discrepancy has left many passengers frustrated when their travel plans are disrupted, especially when they are left stranded without any compensation for their time or money.

The proposed legislation aims to close this gap by introducing a clear and enforceable compensation system that would require airlines to pay passengers for delays of more than three hours. For longer delays, the compensation would increase, offering passengers financial relief and ensuring that airlines take responsibility for their role in the disruption. By doing so, the bill seeks to enhance the travel experience for U.S. passengers and bring the country’s regulations in line with international standards.

Comparing U.S. Regulations to International Standards

The proposal draws inspiration from established regulations in the European Union, Canada, and other countries, where airlines are legally required to compensate passengers for significant delays. In these regions, the compensation amount varies depending on the length of the delay, with passengers receiving compensation that reflects the inconvenience and disruption caused. For example, in the European Union, passengers can receive compensation for delays of three hours or more, with amounts varying based on the distance of the flight and the length of the delay.

In contrast, U.S. regulations have largely focused on refunding passengers for canceled flights, with no law in place to ensure compensation for delays. This has created a gap in passenger rights, particularly as air travel continues to grow, and travelers experience more disruptions. The proposed bill would change this by mandating compensation for delays, ensuring that U.S. passengers are treated fairly and in line with international best practices.

The Path to Legislation

The issue of airline compensation for delays has been a topic of discussion for many years. In 2024, the U.S. Department of Transportation (USDOT) under President Joe Biden proposed new rules that would have required airlines to pay passengers $200 to $300 for delays lasting at least three hours, with compensation for longer delays reaching up to $775. However, the proposal faced opposition from airlines and industry trade groups, including Airlines for America, which represents major U.S. airlines such as American Airlines, Delta Air Lines, and United Airlines.

Critics of the proposed regulations argued that mandating cash compensation for delays could lead to higher ticket prices for consumers. They warned that airlines would raise fares to offset the cost of compensating passengers for delays, making air travel more expensive for all passengers, not just those affected by delays.

In response to this opposition, the Biden administration announced that the proposed rules would not move forward. USDOT explained that implementing these regulations would create “unnecessary regulatory burdens” for airlines and that the government would not proceed with the rule changes. This setback has left the issue of delay compensation unresolved, with airlines continuing to operate without a clear mandate for compensating passengers for delays.

Global Airline Compensation Laws

While the U.S. has lagged behind other countries in terms of passenger compensation for delays, many regions have already established comprehensive rules to protect travelers. The European Union, Canada, Brazil, and the UK all have laws that require airlines to compensate passengers for delays that exceed a certain threshold, usually three hours or more. These laws are designed to ensure that passengers are treated fairly and that airlines take responsibility for the inconvenience and disruption caused by delays.

Currently, no large U.S. airline guarantees cash compensation for delays. While airlines are required to refund passengers for canceled flights, delays remain a gray area where passengers have little recourse for compensation. The new proposed legislation seeks to change this by introducing a clear system for compensating passengers, offering them the protection they need when their travel plans are disrupted.

Regulatory Challenges and the Future of Airline Compensation

The issue of airline compensation has been contentious, particularly under the Trump administration, which withdrew a previous plan that would have required airlines to compensate passengers for delays. In addition to this withdrawal, the Trump administration also worked to reduce regulatory burdens on airlines, pushing to define what constitutes a flight cancellation that entitles passengers to refunds and revisiting rules related to ticket pricing and advertising.

The Biden administration has expressed interest in revisiting passenger protection rules, but the path forward remains unclear. The airline industry continues to voice concerns over ticket price increases and operational disruptions, which could impact the future of airline compensation regulations.

Growing Demand for Passenger Rights and Protections

As air travel continues to grow and more passengers rely on airlines for both leisure and business travel, the need for stronger passenger protections has become more evident. The proposed legislation, if passed, would provide a significant step forward in ensuring that passengers are compensated for the disruptions they face when airlines are at fault for delays. This would offer passengers greater peace of mind and financial protection, making air travel a fairer experience for all.

Conclusion: A Shift in Airline Compensation Policy

The proposed bill introduced by the group of 15 Democratic senators marks a significant shift in the ongoing conversation about airline compensation in the U.S. By introducing legislation that mandates compensation for delays, the bill seeks to provide passengers with the protections they deserve while holding airlines accountable for their role in disruptions.

While the proposal still faces challenges and may take time to pass, it signals a growing demand for reform and sets the stage for future discussions on how to better protect U.S. airline passengers. If passed, the legislation could bring U.S. airline regulations more in line with international standards, offering fair compensation and greater transparency for travelers across the country.

[Source: Reuters]