USDOT Shifts Stance on Airline Fines: From Stiff Penalties to Guidance and Warning Letters

The U.S. Transportation Department proposes revising consumer protection enforcement policies by deemphasizing civil fines for airlines and dropping Biden-era strict measures. The focus will be on compliance through guidance and warnings, allowing public commentary on the new proposal for 30 days.

The U.S. Transportation Department has unveiled a proposal that signifies a shift in its enforcement strategy for airline consumer protection violations. The department, under new guidance, plans to focus more on ensuring compliance rather than imposing hefty civil fines. This marks a significant change from the Biden administration's stance, which prioritized strict enforcement and financial penalties.

According to the proposal, the department will attempt to address allegations of violations by issuing warning letters to airlines, thus allowing them to rectify issues before further actions are taken. The move follows an executive order from 2024 under President Trump and is expected to be open for public commentary for 30 days.

Transportation Secretary Sean Duffy's office has expressed that consumer protection remains a priority, and sanctions will still apply for major violations. Earlier, the department reversed fines on airlines such as American Airlines and Southwest Airlines that were imposed under the previous administration's policy framework.

(With inputs from agencies.)