Airlines Must Pay Up to $775 Cash for Delays Over 9 Hours Under New Compensation Act

The newly introduced Airline Passenger Compensation Act of 2025 is trying to put some real teeth into consumer protection for air travel. Essentially, this bill mandates that the Department of Transportation (DOT) establish federal rules requiring airlines to pay cold, hard cash to passengers when a flight is significantly delayed or canceled due to reasons within the airline’s control (SEC. 2).

This isn't about getting a voucher for a free drink; this is about financial compensation tied directly to how much time you lose. The bill sets clear maximum payment tiers based on arrival time compared to the original schedule: if you arrive more than three hours late but less than nine hours late, the airline owes you up to $300. If your travel headache stretches to nine or more hours late, that compensation cap jumps to $775 (SEC. 2).

The 'Airline’s Fault' Loophole

This is where the rubber meets the runway. The entire compensation system hinges on whether the delay or cancellation was caused by “circumstances within the airline’s control” (SEC. 2). Think mechanical failures, crew shortages, or poor scheduling. It does not cover things like severe weather or air traffic control issues—the usual culprits airlines cite. The DOT has one year to hammer out the exact regulations defining what counts as the airline’s fault, which is a huge detail left up to future bureaucracy. Airlines will certainly push for a narrow definition, which means if your flight is delayed by a thunderstorm, you get nothing under this act, even if the airline’s slow response to the weather made the delay worse.

What Happens When You Miss Your Connection?

For anyone who has ever sprinted through O'Hare only to see their connecting flight pull away, this provision is key. If a qualifying, airline-caused delay makes you miss your connecting flight, the airline must rebook you on the next available flight to your destination at no extra cost (SEC. 2). This is a critical protection, especially for travelers with complex itineraries, ensuring that one operational failure doesn't leave you stranded with an expensive rebooking fee.

Putting Cash on the Clock

For the average traveler, these rules provide tangible recourse. Say you’re a contractor flying out for a time-sensitive job, and a mechanical issue grounds your plane, causing you to arrive eight hours late. Under the current system, you might get a meal voucher and an apology. Under this act, you are owed up to $300 in cash compensation for the lost time and inconvenience. If that delay stretches to ten hours, costing you a full day of work, the $775 cap offers a more meaningful recovery. This is separate from existing refund requirements, meaning this is an extra layer of consumer protection.

While the bill offers a strong incentive for airlines to finally get their operational acts together, it also imposes significant new liabilities on them. Expect airlines to fight hard over the regulatory language that defines “within the airline’s control,” as that definition will determine how often they have to open their wallets. For now, though, this bill is a clear signal that Uncle Sam is tired of seeing passengers sleep on airport floors with no financial compensation for the inconvenience.