A bloc of 15 Democratic senators—led by Mark Kelly (AZ), Ed Markey (MA) and Richard Blumenthal (CT)—has introduced legislation that would compel airlines to compensate passengers at least $300 for delays exceeding three hours and $600 for delays over six hours when the carrier is at fault. The bill mirrors EU 261 and Canada’s Air Passenger Protection Regulations, marking the most aggressive U.S. proposal since 2023.
The initiative follows the Trump administration’s November 14 decision to withdraw a Biden-era rulemaking that had contemplated smaller payouts of $200–$775. USDOT signalled at the time that mandatory compensation would impose “unnecessary regulatory burdens.” Lawmakers now argue that a statutory mandate is needed because the executive branch has reversed course.
![Senators revive drive to make U.S. airlines pay cash for long delays]()
If enacted, U.S. airlines would face a two-tier system: refunds for cancellations plus automatic cash for lengthy delays, aligning American practice with that of most G-7 nations. Airlines for America warns that the measure could raise fares by 2-4 percent and force carriers to pad schedules, potentially reducing seat supply on marginal business routes.
For corporate travel programs, the upside is clear: hard-dollar recovery for employee downtime and simpler service-level agreements in managed-travel contracts. Travel managers should map delay-tracking tools to capture compensation automatically and renegotiate with preferred carriers to ensure timely payouts.
Next steps: the bill goes to the Senate Commerce Committee, where similar measures stalled in 2024. Observers expect a tight vote; mobility professionals should watch whether key swing senators from aviation-heavy states sign on.
The initiative follows the Trump administration’s November 14 decision to withdraw a Biden-era rulemaking that had contemplated smaller payouts of $200–$775. USDOT signalled at the time that mandatory compensation would impose “unnecessary regulatory burdens.” Lawmakers now argue that a statutory mandate is needed because the executive branch has reversed course.
If enacted, U.S. airlines would face a two-tier system: refunds for cancellations plus automatic cash for lengthy delays, aligning American practice with that of most G-7 nations. Airlines for America warns that the measure could raise fares by 2-4 percent and force carriers to pad schedules, potentially reducing seat supply on marginal business routes.
For corporate travel programs, the upside is clear: hard-dollar recovery for employee downtime and simpler service-level agreements in managed-travel contracts. Travel managers should map delay-tracking tools to capture compensation automatically and renegotiate with preferred carriers to ensure timely payouts.
Next steps: the bill goes to the Senate Commerce Committee, where similar measures stalled in 2024. Observers expect a tight vote; mobility professionals should watch whether key swing senators from aviation-heavy states sign on.
