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New DOT Rule Could Reduce Compensation for Airline Delays and Cancellations

Christine Bowen's profile
By Christine Bowen
September 29, 2026
New DOT Rule Could Reduce Compensation for Airline Delays and Cancellations

Air travel advocacy groups are raising concerns about a new rule change that will strip away some previous compensation protections for passengers. Here is a look at the rule change and what it may mean for your next flight as the busy travel season lurks.

New DOT Rules Will Reduce Passenger Protections in the Skies

Airlines will no longer be responsible for ten different categories of flight disruptions. This could leave air travelers with fewer ways to be compensated for travel disruptions. The new rules will start on October 19, per changes made by the U.S. Department of Transportation (DOT) that designate what types of disruptions are considered to be out of the control of an airline.

Photo of Departures Board from Wikimedia Commons
Credit: Wikimedia Commons

The DOT confirmed that it is going to remove 10 events responsible for disruptions from the designation of being "within the carrier's control." These rules were previously outlined by the FAA Reauthorization Act of 2024 by Congress. This act was signed into law by former President Joe Biden, earmarking more than $100 billion to modernize air travel and install new protections for travelers. The legislation effectively mandated strict automatic refund requirements for passengers impacted by cancelled or significantly delayed flights if the issue was within the direct control of the carrier.

According to the rule published on September 3 in the Federal Register, "The U.S. Department of Transportation (Department or DOT) is amending its regulations governing how air carriers report the causes of flight cancellations and delays." The government agency said that "These 10 specific types of flight disruptions will now be tracked in a brand-new reporting category to ensure government delays data accurately reflects what airlines can and cannot control." Current rules dictate that disruptions related to crew scheduling, maintenance, or aircraft cleaning are within the control of the carrier, meaning that passengers are typically eligible for some type of compensation.

The change means that some of these incidents will not be reported in the Bureau of Transportation Statistics' on-time performance data. The policy update also reduces the number of qualifying circumstances under which travelers are eligible to receive cash refunds or vouchers for delays.

Not surprisingly, the change has prompted concern from some aviation experts who believe the new rule benefits the airline industry at the expense of the flying public. "This is going to impact passengers in a very direct way," said William J. McGee, senior fellow for aviation and travel at the American Economic Liberties Project. McGee went on to say, "If I had one thing to say about this, this is really going to hurt consumers because you’re going to be given fewer rights in terms of compensation through meals, hotels, and things like that."

Specifics of the Rule Change

Here are the 10 air travel events that will no longer be classified as within an airline's control:

  • Passenger Death: Aircraft cleaning needed because a passenger passed away.

  • Aircraft Damage: Damage caused by extreme weather, sabotage, or foreign object debris.

  • Baggage System Failures: Cargo or bag delays caused by an outside system outage not controlled by the airline or its contractor.

  • Cybersecurity: Cyberattacks, as long as the airline followed required cybersecurity rules.

  • Government System Failures: Unexpected government or FAA system outages that stop safe flights.

  • Overheated Brakes: Brakes overheating due to a safety event that required emergency procedures.

  • Unscheduled Maintenance: Urgent maintenance or airworthiness directives that happen outside regular schedules and cannot be delayed.

  • Medical Emergencies: Unexpected medical crises onboard through no fault of the airline.

  • Unruly Passengers: The removal of a disruptive or unruly passenger.

  • Volcanic Ash and Wind: Airport closures caused by high winds, wind shear, or volcanic ash.

Airlines will no longer be held accountable to their passengers for these ten air travel events. Nor will they be required to be as transparent about disruptions.

Photo of Dulles Airport from Wikimedia Commons
Credit: Photo of Dulles Airport from Wikimedia Commons

Current law requires that every major U.S. carrier has to share its compensation protocols in the Airline Cancellation and Delay Dashboard. According to McGee, not only may passengers no longer be eligible for compensation, but the rule will also take away the current transparency standards. "That’s problematic for consumers; they’re making decisions based on on-time performance of an airline," said McGee.

The DOT cited "benefits and cost savings" in its analysis of the rules set forth by Congress. Specifically, the DOT said that  "the number of delays and cancellations for which air carriers provide amenities and compensation to consumers is expected to be reduced."


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