Under orders from the Trump administration, the Department of Transportation (DOT) has revoked a passenger protection rule requiring airlines to compensate passengers for significantly delayed or canceled flights.
The rule, which was put in place by the Biden administration last year, is not “consistent with the department and administration priorities,” according to a note published by the DOT earlier this month.
Our Analysis: Less Passenger Protections May Mean More Travel Agent Frustration
When the Biden administration instituted this rule in 2024, some hailed it as a sensible and long-needed consumer protection — in the European Union, a similar order has been in effect since 2004. Some travel agencies, however, felt burdened, as ambiguous language in the rule placed refund responsibilities on their shoulders, even though said funds were no longer in their possession.
For travelers, seeing a rollback like this — in a year when airlines are reporting record-breaking revenue — is discouraging. The move places the Trump administration on the side of big business rather than the average American, who surely is entitled to compensation when negatively impacted by significant flight changes.
ASTA has been vocal on Capitol Hill in hopes of exempting small agencies from refund responsibilities, but it has also always supported passenger rights to a refund. It is no wonder that some travel advisors avoid booking air altogether — and without these basic protections, perhaps travelers will book less air, too.
If airlines aren’t held accountable for delays and cancellations, it stands to reason that the number of such disruptions will grow. And if that happens, those advisors still willing to book air may face increased instances of frustration from clients.
Fast Facts: If Airlines Are Making Record Profits, Why Aren’t They Being Held Financially Responsible?
- According to the International Air Transport Association (IATA), net profits for the airline industry in 2025 will reach $36 billion, up from $32.4 billion in 2024.
- Despite high air prices, IATA reports that the total number of air travelers in 2025 will reach a record high of 4.99 billion, which is 4% higher than 2024 numbers.
- According to a research study conducted this year by U.S. Pirg Education Fund, passenger complaints about flights have increased every year for the last five years.
What They Are Saying: The U.S. Falls Far Behind in Passenger Rights
“The current state of passenger rights in the U.S. is still far behind other parts of the world, such as the United Kingdom and European Union, where stronger passenger protections are in place,” said Tomasz Pawliszyn, CEO of AirHelp, a claims management company. “In addition, U.S. passengers also continue to lack the right to receive care during disruptions, such as access to food, drinks and accommodation — which should be the bare minimum.”
