Will Airlines Face Fewer Fines? US DOT Proposes Major Policy Shift

The US Transportation Department (DOT) is proposing a significant change to its enforcement of airline consumer protection rules. This new guidance would de-emphasize imposing civil fine enforcement on carriers that violate regulations. The proposal also seeks to drop policies from the previous administration that had toughened enforcement measures.

Shifting Enforcement Philosophy

The DOT's Office of Aviation Consumer Protection (OACP) cited an executive order from President Donald Trump as the basis for the change. The new DOT enforcement guidance states its focus will shift. It will prioritize ensuring compliance with civil rights and consumer protection rules. The goal is to achieve compliance rather than finding and penalizing entities for violations.

If a violation is found, the OACP plans to issue a warning letter first. This letter will help the regulated entity achieve compliance and resolve issues. Only after this step would the department pursue further airline violation penalties. The Trump administration proposal suggests that civil penalties should be "reasonable and proportional to the violation and its impacts". This marks a clear departure from the prior administration's approach.

Reversing Biden-era Policies

The department is proposing to drop guidance issued in 2023 under then-President Joe Biden. That guidance called for the department to "intensify enforcement actions". It also sought higher penalties for airlines that violate air travel consumer rights. The Biden administration argued these moves were necessary to deter future violations. They aimed to ensure penalties were not viewed "as simply a cost of doing business".

In November, the department also withdrew a proposal that sought to require airlines to pay passengers cash compensation. This compensation would have applied when carriers were responsible for US flight disruptions. This is part of a broader aviation regulatory shift under the current administration.

Recent Examples of the New Approach

Before the formal guidance change, the DOT had already moved to reverse some penalties. These actions signal the new enforcement philosophy. The department waived $16.7 million in fines imposed on American Airlines in 2024. This fine was part of a settlement over the carrier’s treatment of disabled passengers. The violations included failing to provide adequate assistance and mishandling wheelchairs. Instead of the fine, American Airlines must invest the equivalent amount into improving services for disabled travelers. This includes purchasing wheelchair lifts and enhancing tracking technology.

Similarly, the department agreed to waive the remaining $11 million of a fine imposed on Southwest Airlines. This was part of a $140 million settlement over airline operational problems. The issues stranded more than 2 million passengers during the December 2022 holiday travel period. The DOT cited Southwest’s investment of more than $1 billion in its operations as the reason for the waiver. The department stated that incentivizing operational improvements benefits consumers directly.

Industry and Passenger Impact

For airlines, this shift offers a reprieve from steep financial penalties. It encourages proactive investment in operational resilience over punitive cash fines. Carriers like Southwest Airlines are being credited for large-scale system upgrades. The decision highlights a regulatory preference for long-term systemic fixes.

However, consumer advocates view the move as a potential weakening of consumer rights. They argue that large fines are necessary to deter systemic misconduct. The DOT, which works closely with industry groups like IATA, maintains the new approach is more efficient. The goal is to improve the air travel environment through compliance. This evolving landscape is a key topic in commercial aviation news globally.

• The Office of Aviation Consumer Protection will now prioritize warning letters before issuing fines.
• The department is dropping 2023 guidance that sought to intensify enforcement actions and penalties.
• The DOT waived $16.7 million in fines for American Airlines, mandating the funds be used for disabled passenger services.
• The final $11 million fine for Southwest Airlines was waived, citing the carrier's $1 billion investment in operational systems.