Published on September 23, 2025
By: Rana Pratap
American Airlines joins with Delta, Southwest, United, and other US airlines are pushing to remove key protections for passengers and add more fees by rolling back rules, claiming it will lower costs and boost competition, but it may leave travelers with fewer rights and more hidden charges. Under the guise of lowering costs and boosting competition, these changes are likely to result in the erosion of consumer rights – the right to cancel a ticket with an automatic refund, transparency of pricing, and the right to sit with your family on the same reservation. Airlines claim that removing these ‘protections’ will decrease airfare and increase competition on the routes. The prospects for travelers, on the other hand, will likely be more fees, less certainty of receiving the service paid for, and diminished responsibility from the airlines for service failures. If these projections become reality, deregulation will aggravate the air travel experience for the consumer making it more expensive and more opaque.
The Airline Industry’s Deregulatory Push
The U.S. airline industry is pushing for a significant rollback of consumer protections, which many see as a major step backward for air travel. Airline lobbyists, representing carriers like American, Delta, Southwest, United, and the Airlines for America (A4A) association, have laid out a detailed agenda that would fundamentally alter the landscape of air travel, making it more difficult for passengers to know what they’re actually paying for and less likely to receive compensation when things go wrong.
This agenda centers on weakening or eliminating four major consumer protections:
- Automatic Refunds for Cancellations: Airlines want to remove the requirement to provide automatic refunds when flights are cancelled or significantly altered. Passengers may instead receive only vouchers or no compensation at all, leaving them without recourse in the event of a major flight disruption.
- Transparency of Fees: The airlines also aim to strip away rules that require them to disclose all fees (like baggage, seat assignments, and service charges) upfront. Instead of the clear, itemized pricing system that passengers currently rely on, airlines could hide fees until later in the booking process, making the true cost of a ticket much higher than expected.
- Family Seating Guarantees: Under current regulations, airlines must ensure that families with young children are seated together without additional charges. This would no longer be guaranteed under the new proposal, meaning families could face extra costs just to sit next to one another.
- Accessibility Protections for Disabled Passengers: The deregulation proposal also targets protections for disabled passengers, weakening their access to support and assistance during air travel.
The Airline Industry’s Argument: Deregulation as a Path to Lower Prices
The airline industry’s argument for deregulation is grounded in a belief that removing these protections will lead to lower prices, more competition, and better services for consumers. Airline lobbyists argue that deregulation, which began with the Airline Deregulation Act of 1978, has led to increased competition, lower airfares, and more choices for passengers.
However, while some might agree that competition can drive prices down, there’s a serious concern that deregulation could lead to more surprise charges and less accountability for airlines. Instead of benefiting consumers, deregulation may open the door for airlines to charge excessive fees for basic services, which are often hidden until later in the booking process. This could leave passengers paying far more than they anticipated and receiving less value for their money.
The Airlines’ Detailed Deregulatory Agenda
The Airlines for America (A4A), the industry group representing major U.S. airlines, has strongly supported deregulation, arguing that it has benefited both airlines and passengers since the 1970s. In a recent document, A4A outlined their full deregulatory wish list, which includes the following key points:
- Support for Deregulation: A4A strongly advocates for the continuation of deregulation, claiming that it has led to lower prices, increased competition, and better services for consumers. The group argues that removing regulations would allow airlines to better compete in the market and reinvest in improving services for passengers.
- Criticism of the Biden Administration’s Regulatory Actions:
- Ancillary Fee Transparency: A4A opposes the U.S. Department of Transportation’s (DOT) rules requiring airlines to disclose ancillary fees upfront, arguing that these rules exceed the DOT’s authority and don’t provide any clear benefits to consumers.
- Refund Rules: A4A calls for the repeal or revision of refund rules that, according to them, go beyond what’s required by law, imposing unnecessary costs on airlines without providing any clear benefit to the public.
- Flight Delay and Cancellations: The group also criticizes DOT’s policies on flight delays and cancellations, claiming the rules unfairly penalize airlines, particularly when disruptions are caused by factors beyond their control.
- Deregulatory Priorities: A4A outlines several changes they would like to see the DOT pursue:
- Rescinding Unlawful Regulations: A4A seeks the repeal of certain regulations, such as family seating and mobility aid assistance rules, which they argue exceed DOT’s authority.
- Limiting Refund Rules: The group wants to limit DOT’s authority on flight refund rules, particularly for minor operational changes, such as changes to flight numbers or itineraries that don’t cause harm to passengers.
- Economic Impact of Deregulation: A4A points to the success of deregulation, citing a rise in low-cost carriers, which have made air travel more affordable. They also highlight the significant decrease in airfare prices, which has directly benefited consumers.
- Investment in Airline Operations: A4A argues that deregulation has allowed airlines to reinvest in their services, improving customer satisfaction and innovation.
- Support for Technological Innovation: The airline industry is also backing the use of technology, including artificial intelligence (AI) and biometrics, to improve operational efficiency and the customer experience.
Why Deregulation is a Concern for Passengers
While the airline industry argues that deregulation will lead to lower prices and more competition, critics are skeptical. Here are the key reasons why deregulation could harm consumers:
- More Hidden Fees: If airlines are no longer required to disclose fees upfront, passengers may face a barrage of surprise charges, from baggage fees to seat selection costs. The cost of air travel could increase significantly, even if base fares appear lower.
- No Guarantees for Families: The proposal to eliminate the guarantee that families will be seated together without extra charges could lead to more stress for families travelling with young children. Parents may find themselves paying additional fees just to sit next to their kids.
- Less Accountability for Cancellations: Airlines would have more power to decide whether or not to refund passengers for flight cancellations. This could lead to more vouchers, rather than cash refunds, leaving passengers at the mercy of airlines’ own policies.
- Weaker Protections for Disabled Passengers: The weakening of accessibility regulations could make it more difficult for passengers with disabilities to access the services and assistance they need during their travel.
- Less Competition, Not More: While deregulation advocates claim it will lead to more competition, the reality is that fewer protections for consumers could allow major airlines to exploit passengers without fear of consequences. Smaller carriers may also struggle to compete on an uneven playing field.
The Risk of Over-Regulation vs. Consumer Protection
The battle between over-regulation and consumer protection is a complex issue. While it’s true that some regulations may stifle innovation, the protections that are in place help ensure fair treatment and transparency for consumers. The question is not whether airlines should be regulated, but how much regulation is necessary to strike a balance between profitability and protecting passengers.
In Europe, stricter regulations have led to fewer delays and cancellations, and the market remains competitive with budget airlines thriving under the current system. The fear is that deregulation in the U.S. could result in a situation where airlines dominate the market, and passengers are left with fewer rights and more fees.
What Passengers Can Do
As a passenger, it’s important to stay informed about these changes and advocate for your rights. Here are some steps you can take:
- Stay Informed: Keep up with the latest news and updates on airline regulations.
- Contact Your Representatives: Let your senators and congress members know how you feel about the deregulation of the airline industry.
- Know Your Rights: Understand the protections you currently have and how they might change.
American Airlines, Delta, Southwest, United, and other U.S. airlines are pushing to remove key protections for passengers and add more fees by rolling back regulations, arguing that it will lower costs and increase competition, but it could also lead to fewer rights and more hidden charges for travelers.
Conclusion
The deregulation push by U.S. airlines is a major threat to passenger rights. While airlines argue that deregulation will lead to cheaper fares and more competition, the reality is likely to be more fees, less transparency, and fewer protections for passengers. If successful, this move could turn back the clock to a time when flying was riddled with hidden charges and unfair treatment.
The future of air travel depends on consumers, advocacy groups, and lawmakers standing up for passenger rights. The airline industry may be pushing for deregulation, but it’s up to the public to ensure that the changes made are in the best interest of all passengers, not just the airlines. The battle is not just about cheaper tickets, but about ensuring that air travel remains fair, transparent, and accountable for everyone.
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