MW How you can still get a refund for a delayed or canceled flight even as Trump scraps Biden's airline compensation proposal

By Genna Contino

'These are going to be a really difficult three years in terms of consumer protection,' one consumer advocate says

For now, passengers on most major U.S. carriers are still entitled to certain concessions when travel is severely disrupted.

President Donald Trump's administration this week said it will reverse plans to require airlines to compensate passengers for lengthy delays and cancellations, a move consumer advocates say is likely just one of many to weaken protections for travelers.

The scrapped federal rule, proposed by former President Joe Biden's administration in 2023, would have required airlines to pay passengers between $200 and $775 along with free rebookings, lodging and meals for U.S. flights disrupted by events within an airline's control, such as a maintenance problem or delay for fueling.

The rule had not yet taken effect, and there was no timeline in place for its implementation, but it was lauded at the time as a win for air travelers.

Consumer watchdogs have their sights set on other changes to airline regulation that are potentially on the horizon, but, for now, passengers on most major U.S. carriers are still entitled to certain concessions if their travel is severely disrupted.

"Among the 10 largest airlines today, all 10 airlines will rebook on their own airline and provide a meal voucher if a cancellation or three-hour-plus delay is their fault," said Teresa Murray, consumer watchdog director at the Public Interest Research Group.

Those airlines are Alaska Airlines $(ALK)$, Allegiant Air $(ALGT)$, American Airlines $(AAL)$, Delta Air Lines $(DAL)$, Frontier Airlines $(ULCC)$, Hawaiian Airlines, JetBlue $(JBLU)$, Southwest Airlines $(LUV)$, Spirit Airlines $(FLYYQ)$ and United Airlines $(UAL)$.

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What can an airline give you if your flight is delayed? It depends on the airline.

The Department of Transportation's FlightRights.gov site shows the commitments that the 10 major airlines have made in the event of a controllable cancellation or delay.

While all 10 will rebook on their own airline and provide a meal voucher in the event of a cancellation or three-hour-plus delay, only six of the carriers will rebook on a competitor: Alaska, American, Delta, Hawaiian, JetBlue and United.

Nine of the 10 - all except Frontier - will cover the cost of a hotel and ground transportation if a passenger is stranded at an airport overnight because of a factor within the control of the airline.

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"Clearly, airlines don't have to offer these to customers, but if they've made the commitment then they do," Murray said. "The proposed rule likely would have required some of this for all of the airlines."

The "automatic refund rule" also remains in place. That rule entitles passengers to a refund if their flight is canceled and the airline doesn't rebook them, if the passenger doesn't accept rebooking or significant changes, if baggage is significantly delayed, or if a customer paid for extra services such as Wi-Fi or seat selection that were not provided.

One way to determine which airlines are most "refund friendly," or provide a high level of customer service in times of flight disruption, is to look at the complaints in the Transportation Department's Air Travel Consumer Reports, said consumer advocate Christopher Elliott, who publishes a news site about how to become a smarter consumer. "See who's getting the most complaints, and that usually is the airline that has the worst reputation," Elliott said.

In May 2025, American Airlines accounted for more than a quarter of the 4,951 submissions, with 1,574 passengers submitting complaints, inquiries and opinions about the airline. United was next on the list with 832, followed by Delta Air Lines with 684 submissions and Frontier with 671.

"Generally speaking, in terms of the main legacy carriers, Delta has a pretty good reputation for taking care of its customers; United and American, less so," Elliott said. "Then among the low-fare carriers - or the non-legacy carriers, if you will - JetBlue and Southwest still have good reputations for taking care of their customers. But, again, it can change from month to month, so it's not really a hard, fast thing."

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United Airlines and Delta Air Lines declined to provide comment and directed MarketWatch to the industry group Airlines for America, which did not immediately respond to inquiries about those airlines. Southwest also declined to provide comment.

American, Frontier and JetBlue did not immediately respond to MarketWatch requests for comment.

'Hold on to your wallet': More changes coming to U.S. air travel

While consumer advocates think it's concerning that the Transportation Department rolled back its plan to require airlines to take care of customers when they're stranded, the rule hadn't gone into effect yet.

"My first thought when I heard about the change was, 'What took them so long?' " Elliott said. "[The airlines] have been opposed to this rule since the very beginning, and they knew they had a friend in the Trump administration, and they have a long list of consumer regulations that they're trying to undo."

Elliott and Murray are much more worried about plans to come that are listed on the Transportation Department's 2025 agenda.

"We could see a total rollback of automatic, no-hassle refunds for canceled flights - which is the law already," Murray said. "Also at risk are requirements to disclose baggage fees and full fares upfront including all taxes and fees; protections for travelers with disabilities; refunds for bags that arrive more than 12 hours late; and other rules that were already approved."

A spokesperson for the Transportation Department told MarketWatch that it will implement all aviation consumer-protection requirements mandated by Congress, "including the requirement to refund ticket prices to passengers in the case of airline-canceled or substantially delayed flights when consumers choose not to travel."

"Some of the rules proposed or adopted by the previous administration, however, went beyond what Congress has required by statute, and we intend to reconsider those extrastatutory requirements," the spokesperson said.

The White House did not immediately provide comment when contacted by MarketWatch.

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The trade association Airlines for America, which represents major North American airlines, made a case for deregulation to the Trump administration in comments submitted to the Transportation Department in May. In the comments, the organization said that an "activist agenda" present during the administrations of Presidents Joe Biden and Barack Obama stifled innovation, capitalism and efficiency and raised prices for consumers.

"We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don't solve issues important to our customers," Airlines for America said in a statement emailed to MarketWatch. "We look forward to working with DOT on implementing President Trump's deregulatory agenda."

The group's comments include a wish list that Elliott says would "undo every significant consumer regulation that has been enacted in the last 10 years."

"Hold on to your wallet," he said. "These are going to be a really difficult three years in terms of consumer protection."

-Genna Contino

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September 05, 2025 17:36 ET (21:36 GMT)

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