January 8, 2026 l Dalena Reporters
WASHINGTON — The U.S. Department of Transportation (DOT) is proposing a major shift in how it enforces airline consumer protection rules, moving toward a regime that could significantly reduce or even eliminate civil fines for carriers that violate consumer rights standards. The draft guidance, announced on January 7, 2026, would place a greater emphasis on compliance and correction rather than punitive financial penalties, a change that critics warn may weaken protections for airline passengers.
Under the proposal from the DOT’s Office of Aviation Consumer Protection, regulators would focus first on issuing warning letters to airlines when violations such as unfair practices, misleading advertising or mistreatment of passengers are identified, rather than immediately seeking monetary penalties. The new approach is designed to help carriers correct defective procedures before enforcement escalates, according to internal agency communications.
The move would roll back elements of a 2023 enforcement framework instituted under the previous administration, which had intensified oversight and sought higher fines to deter future infractions. That policy was credited with some of the largest consumer protection enforcement actions in U.S. history, including substantial penalties tied to disability-related mistreatment and operational failures involving delay and cancellation handling.
Transportation officials say the proposed shift aligns with an executive order issued in early 2026 advocating that civil penalties be “reasonable and proportional” to the severity and impacts of violations, rather than punitive by default. Under the new guidance, the DOT’s enforcement strategy would prioritise correcting consumer harms through engagement and compliance assistance, with civil fines considered a last resort when corrective steps fail to resolve identified issues.
The proposal comes amid a broader trend under the current administration to ease regulatory burdens on industry, prompting debate between consumer advocates and airline interests. Critics argue that reducing the threat of fines may encourage lax compliance with consumer rights obligations and weaken deterrence for systemic problems, particularly given the airline industry’s history of operational delays, mishandled baggage, tarmac holds and other issues affecting travellers.
Airlines have previously faced significant penalties under DOT enforcement actions, including multi-million-dollar fines related to failure to assist passengers with disabilities, compensation settlements for operational meltdowns, and other consumer protection violations. However, the trend toward non-punitive remedies marks a notable departure from recent enforcement practice and has generated concern among passenger rights groups and state attorneys general advocating for robust accountability measures.
The proposal is open for public comment for 30 days, allowing stakeholders including consumer advocates, carriers and industry associations to weigh in before final rules are adopted. Regulatory analysts say the outcome could reshape the landscape of airline consumer protection and influence how passenger issues are addressed in service disputes and enforcement actions going forward.