Trump is dumping a Biden proposal that would compensate airline travelers for disruption caused by the carrier including flight cancellations or severe delays.
Biden proposed the rule in December 2024, which would compensate consumers with cash, lodging and meals for mechanical problems or computer outages that could strand travelers overnight.
The proposal would have offered at least $200 for a canceled or significantly delayed flight, or up to $775 for delays of nine hours or more.
Industry trade group Airlines for America celebrated the administration’s decision to review “unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers.”
Spirit Airlines said the rule threatened to increase costs for both carriers and passengers.
Spirit filed for Chapter 11 bankruptcy for the second time in a year last week, and suspended operations in about a dozen cities.
“There is no free lunch,” Spirit said. “If every time a flight has to be cancelled due to, say, an aircraft maintenance issue, airlines were required to pay each affected passenger $300 plus hotel and meals, there would be a perverse incentive to cancel flights preemptively at any hint of trouble.”