Airfares may rise if we have to pay passengers for flight delays, airlines tell Trump

• The Biden administration opened a review into making airlines pay cash compensation to passengers.
• Airlines for America is asking the Trump administration to end this.
• The lobby group says it wouldn't provide any economic incentive and may increase ticket prices.

A trade group for major airlines called on the Trump administration to end a review into cash compensation for delayed passengers.

Airlines for America (A4A), which represents 10 carriers including Delta, American, and United, wrote to the Department of Transportation on Monday.

The review was set up by the Biden administration and started work in December. It is seeking consumer comments on whether passengers should get cash compensation for disruptions where the airline is at fault.

It suggested airlines should be required to pay $200 to $300 for domestic delays of at least three hours, $375 to $525 for six-hour delays, and $750 to $775 for nine-hour delays. Similar rules are in place in Canada and Europe.

However, A4A is fighting back against the proposed rules.

The lobby group warned that airlines are likely to raise ticket prices and cancel more flights in case of severe delays. "Airlines do not need further incentive to provide quality service," the letter stated.

The group's airlines already give automatic refunds if a passenger chooses not to rebook a flight, the letter said. If passengers do choose to rebook at no additional cost, the airlines provide meals or cash or vouchers for meals, hotel accommodations, and/or ground transportation.

It also said the regulations would go beyond the Department for Transportation's statutory authority.

In December, then-Transportation Secretary Pete Buttigieg said compensation rules for delays "would change the economic incentive in a way that motivates airlines to do more."

The Biden administration made several efforts to issue new rules it said would give passengers more rights.

Last April, it required airlines to promptly give passengers automatic cash refunds when owed.

And in early January, the DoT fined JetBlue $2 million for operating chronically delayed flights.

In Monday's letter, A4A said a rule requiring cash compensation would be "directly contrary to President Trump's regulatory policies and directives" — noting his policy to remove unnecessary regulations.

The DoT did not immediately respond to a request for comment.