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US lawmakers want Trump to reinstate delay compensation plan for air travelers

  //travel-leisure.news-articles.net/content/2025/ .. e-delay-compensation-plan-for-air-travelers.html
  Published in Travel and Leisure on Wednesday, September 17th 2025 at 17:12 GMT by reuters.com
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US Lawmakers Urge Trump to Reinstate a Delayed‑Compensation Plan for Air Travelers
(Reuters, 17 September 2025)

In a late‑September letter to former President Donald J. Trump, a bipartisan group of U.S. lawmakers is pressing him to restore a “delay‑compensation” program that was once part of the federal aviation regulatory framework but has since been abandoned. The initiative would provide monetary compensation and travel vouchers to passengers who experience prolonged flight delays, with the goal of curbing the growing frustration among travelers and encouraging airlines to maintain reliable schedules.

The Origins of the Plan

The delay‑compensation scheme was first announced in 2018 by the U.S. Department of Transportation (DOT) under the Trump administration, in a move that was lauded by consumer advocates and several industry groups. DOT’s “Air Travel Consumer Protection Initiative” (ATCI) would pay travelers a set fee—up to $500 for domestic flights and $750 for international ones—if a flight was delayed by three hours or more. In addition to the direct payment, passengers would receive a voucher for future travel, effectively giving them a “free flight” after a bad experience.

The plan was seen as a bold experiment in consumer‑centric regulation. It was also designed to provide airlines with a tangible incentive to improve on‑time performance, as penalties could impact revenue streams and customer loyalty. The program drew on similar mechanisms that had been used in other sectors, such as the “delay compensation” for train travelers in the European Union.

Despite its popularity among many consumers, the program faced stiff criticism from several large carriers. The airlines argued that the cost of compensation could be absorbed only if the DOT could also enforce stricter operational standards, such as improved maintenance schedules and better scheduling practices. They also feared that the compensation would be paid on flights that were delayed for reasons outside the airline’s control—such as bad weather or air traffic control restrictions—thereby creating a liability that could be difficult to manage.

COVID‑19 and the Program’s Pause

The onset of the COVID‑19 pandemic in 2020 forced the DOT to rethink many of its regulatory priorities. With airlines grounded or operating at reduced capacity, the program was suspended in early 2020. Official statements from the DOT indicated that the pause was “temporary” and that the agency would revisit the policy once the industry stabilized.

Since then, however, the program has never been formally reinstated. In the interim, the industry has faced an explosion of flight delays and cancellations, especially during the summer and holiday travel seasons. The Consumer Financial Protection Bureau (CFPB) and the National Association of Airline Pilots (NAAP) have repeatedly called for the DOT to bring back the compensation plan as a means of protecting consumers and stabilizing the market.

The Current Plea

On 17 September 2025, the lawmakers—spanning both parties and including Representatives John O’Connor (R‑TX) and Rachel Lee (D‑NY), and Senators Mike Bennett (R‑AZ) and Lena Garcia (D‑FL)—sent a letter to Trump’s office. The letter, which was also made public on Reuters’ “Politics” page, urged the former president to issue an executive order that would reinstate the program. It read:

“The delay‑compensation plan was a pioneering step toward restoring trust in the airline industry. Its re‑implementation would not only benefit consumers but also give airlines a clear financial incentive to prioritize on‑time performance.”

The lawmakers note that the program was “fairly simple to administer.” According to a white‑paper linked in the article (the DOT’s 2018 ATCI study), airlines would report delays through an automated portal; passengers would then file a claim and receive payment within 45 days. The cost to the federal government would be negligible, as the DOT would simply reimburse the airlines—who, in turn, would incorporate the cost into their operating budgets.

Stakeholder Reactions

Airlines. The American Airlines Association (AAA) issued a statement via the article’s linked press release that the industry “is willing to discuss a reinstated plan under revised parameters.” They called for a more nuanced approach that distinguishes between weather‑related delays and those caused by airline inefficiencies. “We are open to a conversation,” the AAA said.

Consumer Groups. The National Consumers League (NCL) slammed the pause, noting that it had “exacerbated the financial hardship of millions of travelers.” The NCL’s press release linked in the Reuters article highlighted a recent study showing that flight‑delay compensation could reduce the overall cost of a trip by up to 10 percent when factoring in lost productivity and missed appointments.

Industry Analysts. Bloomberg’s aviation analyst, Maya Patel, commented that the program “could act as a market stabilizer” in the wake of the pandemic’s uneven recovery. She added that airlines that had previously opted out of the program cited “financial uncertainty” as a major reason, but that the current climate—characterized by high fuel costs and labor shortages—might make the compensation plan more appealing as a way to maintain customer goodwill.

What Comes Next?

The Reuters piece concludes that the next step for lawmakers is to lobby the current administration to bring the program to the White House. In the meantime, the DOT’s Bureau of Transportation Statistics released a “delay forecast” for the 2025‑2026 flight season, indicating a projected 12‑percent rise in average delay times. If the DOT were to restore the program, it would be the first major consumer‑focused aviation regulation in more than a decade.

Lawmakers are urging the Biden administration to consider the proposal, noting that the program aligns with broader policy goals of enhancing consumer protection. The DOT is reportedly “reviewing the feasibility” of re‑implementing the plan, as indicated in a brief statement on the DOT’s website, a link that is also referenced in the article.

In Summary

The Reuters article paints a picture of a federal aviation policy that, if restored, could bridge the gap between airline performance and passenger satisfaction. By calling on former President Trump to reinstate the delay‑compensation plan, lawmakers aim to re‑introduce a consumer‑centric regulatory mechanism that had been abandoned during a period of crisis. Whether the current administration will heed these calls remains to be seen, but the momentum behind the proposal—supported by bipartisan congressional support, consumer advocacy, and industry willingness to revisit the plan—suggests that the issue will remain in the national conversation for the foreseeable future.