The Airline Passenger Compensation Act of 2025 requires the Department of Transportation to establish new rules within one year that mandate airlines compensate passengers for flight delays and cancellations caused by airline-controllable factors. Passengers experiencing delays of 3 to 9 hours beyond their scheduled arrival time would receive up to $300 in compensation plus a free rebooking on the next available flight if they miss a connection, while those delayed 9 or more hours would receive up to $775 plus rebooking. The law applies to both domestic and international flights and is separate from existing federal refund requirements. This legislation directly affects airline passengers and major U.S. carriers, who would bear the cost of compensation and increased customer service obligations. There is no specific funding mechanism mentioned, as compliance costs would fall directly on airlines rather than requiring federal appropriations.
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