Airlines have emerged as early winners in the early months of President Donald Trump’s second term as the administration rolls back regulations, alarming consumer protection advocates.
Behind the scenes, the airline industry appears to have made a concerted effort to get close to the administration, pouring hundreds of thousands of dollars into Trump-tied firms, including Department of Transportation Secretary Sean Duffy’s former employer. It’s already seeing returns.
This month, the Transportation Department withdrew a Biden-era proposal that would have required airlines to compensate passengers for excessive delays. The only explanation provided on the announcement was that it was “consistent with Department and administration priorities.”
The agency told NOTUS it was worried the additional costs could drive up ticket prices and incentivize airlines to get planes out quickly rather than safely — concerns raised by the industry.
Nathaniel Sizemore, a Transportation Department spokesperson, told NOTUS that they’re focused on fixing root disruptors of air travel including air traffic controller shortages and system modernization “rather than performatively claiming to address the symptoms for political points.”
The Transportation Department also plans to rescind regulations requiring airlines to disclose service fees and revise rules on a range of issues including redefining what flight cancellations require refunds for passengers.
Sizemore characterized the changes as part of a “broader effort to ensure the traveling public is treated fairly while also recognizing how overly burdensome regulations will raise ticket prices for the traveling public and compromise safety for the sake of efficiency.”
Airlines were thrilled.
“We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers. We look forward to working with DOT on implementing President Trump’s deregulatory agenda,” Airlines for America, a trade association that represents major North American airlines, said in a statement to NOTUS.
The airline industry has one of the most moneyed lobbying operations in Washington — and one of the most concentrated. Four airlines — Delta, United, Southwest and American Airlines — control more than 68% of the domestic airline market share, according to the Bureau of Transportation Statistics.
Airlines for America, Delta, United, Southwest and American account for more than $12.2 million of the $16.4 million the industry has spent on federal lobbying in the first six months of 2025, according to OpenSecrets, a nonpartisan nonprofit that tracks the flow of money in politics.
Several industry giants have hired Trump-tied firms including Ballard Partners and BGR Group, where Duffy used to work, as they capitalize on the current deregulatory environment in Washington. Duffy, who was co-head of the firm’s financial services practice and a member of the advisory board, previously represented the Partnership for Open Skies, a coalition of U.S. airlines including United, American and Delta focused on access to international markets as opposed to domestic policy issues.
“As reported in the NYT, Secretary Duffy’s time in advocacy involved a brief period of work for the Open Skies Partnership. That work was strictly focused on international affairs and encouraging access for U.S. carriers into foreign markets. No part of that work involved domestic aviation policy,” Sizemore said.
Delta hired BGR Group in February to lobby on “issues related to the airline industry.” The team includes Trump administration alum Joseph Lai, former special assistant to the president for legislative affairs, and has disclosed receiving $160,000 through June 30.
Fierce Government Relations, which has lobbied for Delta since 2015, recently made a notable addition to the aviation giant’s lobbying account. Patrick Clifton, former special assistant to the president for operations during the first Trump administration, joined Fierce Government Relations in May and immediately started lobbying the executive office of the president on “general aviation issues.”
United hired Michael Best Strategies a few days before the election to lobby on “issues related to federal aviation regulation” and Ballard Partners in February to lobby on “aviation policy for domestic carriers.” The airline paid Michael Best Strategies $160,000 and Ballard Partners $150,000 to lobby Congress, the Transportation Department and the White House in the first six months of 2025.
Airlines for America also hired Ballard Partners in January to lobby on “Aviation Policy for domestic carriers.” The trade association has paid Ballard Partners $140,000 to lobby Congress and the Transportation Department in the first six months of 2025, although a person familiar with the firm’s lobbying said it did not work on the delay compensation proposal.
The Department of Transportation, American Airlines, Southwest Airlines, Ballard Partners, Michael Best Strategies, Fierce Government Relations, Lai and Clifton did not respond to requests for comment. Delta and United declined to comment.
No agency has claimed more “deregulatory” actions than the Department of Transportation, according to a recent analysis by the American Action Forum, a center-right policy institute.
The Transportation Department had 285 deregulatory items, more than the Interior Department, Labor Department and Environmental Protection Agency combined, according to the policy institute’s analysis of a biannual regulatory report published last week by the Trump administration.
While many of those changes would apply to other means of transportation, including cars and rails, several address airline industry concerns, including rewriting rules related to flight cancellation refunds and compensation, fee disclosure and fare advertising.
Consumer protection advocates have responded to the rollbacks with dismay.
Paul Hudson, president of FlyersRights, a nonprofit that represents airline passenger rights, sent Duffy a letter last week requesting, “for a third time,” to meet with the secretary.
“I understand you have heard the A4A arguments against regulations. But have you heard the views of airline passengers?” Hudson wrote.
“Washington-insider A4A lobbyists always argue that all regulations are burdensome and raise the cost of air travel. The American public and the transportation system as a whole needs to know you are fair and not anti-passenger,” Hudson added.
In January, Trump issued an executive order at the start of his term directing agencies to “alleviate unnecessary regulatory burdens.” The Transportation Department was “one of the more active ones from the onset,” Dan Goldbeck, director of regulatory policy at the American Action Forum, told NOTUS. Goldbeck anticipates the pace of deregulation to pick up in 2026.
“It’s interesting that it took them so long to withdraw [the delay compensation proposal],” Goldbeck added, noting the swift rollback of other regulations following the president’s order.
The Transportation Department under the Biden administration had put out the proposal in December that would require airlines to compensate passengers between $200 and $775 and provide free meals, lodging and rebooking for delays within the airlines’ control. Airlines are currently required to issue refunds if a flight is canceled but do not have to compensate passengers when they cause excessive delays, a policy that has been adopted in countries including Canada, Brazil, the European Union and the United Kingdom.
Hundreds of passengers and consumer advocates including FlyerRights, the American Economic Liberties Project and the National Consumers League submitted comments in support of the proposal, arguing the policy promotes competition in the marketplace, encourages airlines to invest in operational capacity and saves consumers from having to spend significant amounts of money for delays within the carriers’ control.
Airlines for America also submitted a comment arguing the proposal “fails to recognize the remarkable services provided by the airline industry” and runs contrary to the president’s deregulatory agenda.
“The first round has gone to the airline lobby, but we’ll see how that plays out in the future,” Hudson told NOTUS.