The U.S. Department of Transportation’s Office of Aviation Consumer Protection (OACP) released draft guidance on January 8 that would pivot the agency away from the hefty fines levied in recent years against carriers for tarmac delays, schedule-change refunds and disability violations. Under the proposal, regulators would first issue warning letters and give airlines a chance to cure problems before pursuing civil penalties—explicitly rescinding 2023 Biden-era policy that promised tougher monetary sanctions.
The shift flows from a February 2026 executive order by President Trump directing agencies to keep penalties "reasonable and proportional." In the same notice, DOT revealed it had already waived $16.7 million of a 2024 consent order against American Airlines and the remaining $11 million of a record $140 million fine against Southwest tied to its 2022 holiday-meltdown settlement, citing each carrier’s "good-faith operational investments."
While regulatory enforcement may ebb and flow, documentation requirements remain constant. VisaHQ’s corporate platform (https://www.visahq.com/united-states/) helps travel and mobility teams stay ahead of disruptions by automating visa and passport processing, offering live status alerts and compliance dashboards that integrate with existing booking tools. By streamlining approvals and storing traveler profiles, VisaHQ frees managers to focus on duty-of-care and refund negotiations instead of last-minute paperwork crises.
![DOT Proposes Softer Enforcement Approach, Rolling Back Higher Airline Penalties]()
Corporate travel managers fear the softer line will weaken deterrence just as staffing shortages, weather extremes and drone-related ground stops have pushed disruption levels back toward their pandemic peak. The Business Travel Coalition warned members that fewer fines could translate into slower refunds and diminished leverage when negotiating service-level agreements in corporate contracts.
On the other hand, airlines argue that compliance-first enforcement will let them channel resources into technology and staffing upgrades rather than litigation. Delta and United told investors on Friday that the proposed policy “aligns accountability with continuous-improvement frameworks” and should free up tens of millions of dollars for airport-IT modernization and premium-cabin expansion projects.
The guidance is open for public comment until February 7. Mobility and travel-procurement teams should submit feedback documenting how delayed refunds affect duty-of-care policies and cash-flow forecasts. If finalized, companies may need to strengthen contractual refund clauses, ensure corporate cards remain flexible enough to handle longer reimbursement timelines and educate travelers about their rights under the still-binding automatic-refund rule published in 2024.
The shift flows from a February 2026 executive order by President Trump directing agencies to keep penalties "reasonable and proportional." In the same notice, DOT revealed it had already waived $16.7 million of a 2024 consent order against American Airlines and the remaining $11 million of a record $140 million fine against Southwest tied to its 2022 holiday-meltdown settlement, citing each carrier’s "good-faith operational investments."
While regulatory enforcement may ebb and flow, documentation requirements remain constant. VisaHQ’s corporate platform (https://www.visahq.com/united-states/) helps travel and mobility teams stay ahead of disruptions by automating visa and passport processing, offering live status alerts and compliance dashboards that integrate with existing booking tools. By streamlining approvals and storing traveler profiles, VisaHQ frees managers to focus on duty-of-care and refund negotiations instead of last-minute paperwork crises.
Corporate travel managers fear the softer line will weaken deterrence just as staffing shortages, weather extremes and drone-related ground stops have pushed disruption levels back toward their pandemic peak. The Business Travel Coalition warned members that fewer fines could translate into slower refunds and diminished leverage when negotiating service-level agreements in corporate contracts.
On the other hand, airlines argue that compliance-first enforcement will let them channel resources into technology and staffing upgrades rather than litigation. Delta and United told investors on Friday that the proposed policy “aligns accountability with continuous-improvement frameworks” and should free up tens of millions of dollars for airport-IT modernization and premium-cabin expansion projects.
The guidance is open for public comment until February 7. Mobility and travel-procurement teams should submit feedback documenting how delayed refunds affect duty-of-care policies and cash-flow forecasts. If finalized, companies may need to strengthen contractual refund clauses, ensure corporate cards remain flexible enough to handle longer reimbursement timelines and educate travelers about their rights under the still-binding automatic-refund rule published in 2024.
