UK Joins France, Italy, Spain, Germany, Sweden, and Other European Travelers to Face New Challenges as US Government Strips Away Passengers Rights by Withdrawing Cash Compensation Rule: Everything You Need to Know

Published on November 20, 2025

UK, along with France, Italy, Spain, Germany, Sweden, and other European travelers, now faces new challenges as the US government strips away passenger rights by withdrawing the cash compensation rule. Passengers will only be guaranteed refunds, with compensation left to airline discretion. This change significantly impacts European travelers flying on US airlines or traveling to/from the US, as they will no longer automatically receive cash compensation for disruptions caused by the airline. While refunds for cancellations or significant changes will still be provided, the absence of mandatory cash payouts for delays raises concerns about the protection of passenger rights and the overall travel experience.

Comparison of the Old and New Cash Compensation Rules for Airline Disruptions

The following table compares the old proposed cash compensation rule with the new approach set by the US Department of Transportation (DOT). The old rule would have required airlines to provide cash compensation for significant delays or cancellations caused by the airline, with specific amounts based on the length of the delay. However, the new regime no longer mandates cash compensation for disruptions caused by airlines. Instead, passengers are guaranteed refunds in cases of cancellations or significant changes, but additional compensation, such as cash payouts, is now at the airline’s discretion.

Impact on International Travelers Due to US Cash Compensation Rule Freeze

• United Kingdom: UK passengers flying on U.S. airlines or to/from the U.S. will no longer be guaranteed cash compensation for delays or cancellations caused by the airline. However, they will still be entitled to an automatic refund if the flight is cancelled or significantly changed and they do not accept the alternative offer.
• France: French passengers flying on U.S. airlines or connecting through U.S. airports will also lose the guarantee of cash compensation for airline-caused delays or cancellations. They remain protected under the refund rule, meaning they are entitled to a full refund if they decline the offered alternative.
• Italy: Italian travellers flying on U.S. airlines will not be guaranteed cash compensation for delays or cancellations caused by the airline. However, they still have the right to a refund if the flight is cancelled or significantly altered, and they do not accept the alternative arrangements offered by the airline.
• Spain: Spanish travellers on U.S. airlines will be similarly affected by the freeze on the cash compensation rule. They will not automatically receive compensation for disruptions but are still eligible for a refund if their flight is cancelled or significantly changed and they choose not to accept the new options.
• Germany: German citizens flying on U.S. carriers will lose the protection of automatic cash compensation for disruptions. However, they will retain the right to a refund if the flight is cancelled or significantly changed and they reject the alternative offered by the airline.
• Sweden: Swedish passengers flying on U.S. carriers will face the same situation, with no mandatory cash compensation for disruptions. However, they will still have the right to a refund if the flight is cancelled or changed significantly and they choose not to take the alternative offered.

Airline Responses to the Cash Compensation Rule Freeze

United Airlines: United Airlines supported the freeze, arguing that mandatory compensation would increase operational costs and raise fares. They believe their current policies—rebooking and meal vouchers—sufficiently address passenger needs during delays.

American Airlines: American Airlines also supported the freeze, citing operational challenges during peak periods and uncontrollable disruptions like weather. They emphasized resource efficiency and competitive pricing, offering refunds and rebooking instead of mandatory compensation.

Southwest Airlines: Southwest Airlines echoed similar concerns, stating that additional compensation requirements would raise fares. Their existing policies, including rebooking and meal vouchers, are seen as adequate for addressing delays.

Frontier Airlines: Frontier Airlines provides rebooking and meal vouchers for delays but does not offer automatic cash compensation. Their policy focuses on alternative solutions rather than guaranteed financial compensation.

Delta Air Lines: Delta includes rebooking and accommodation for significant delays but does not automatically provide cash compensation. They focus on customer support through rebooking and amenities instead of financial payouts.

JetBlue Airways: Starting in 2026, JetBlue will offer points instead of cash for compensation, moving away from the proposed cash compensation rule. This shift aligns with their focus on rewarding customers through loyalty points.

UK, along with France, Italy, Spain, Germany, Sweden, and other European travelers, now faces new challenges as the US government strips away passenger rights by withdrawing the cash compensation rule. Passengers will only be guaranteed refunds, with compensation left to airline discretion.

Conclusion

UK, along with France, Italy, Spain, Germany, Sweden, and other European travelers, now faces significant challenges as the US government strips away passenger rights by withdrawing the cash compensation rule. This move leaves passengers only guaranteed refunds for cancellations or significant changes, with additional compensation left entirely to the discretion of the airline. The withdrawal of this rule has sparked concern among international travelers who once had the protection of guaranteed compensation for delays and cancellations caused by US carriers. As this new policy takes effect, European passengers will need to adapt to the changes, with the potential for less reliable financial protections during travel disruptions.