Lawsuit challenges new airlines fee disclosure rule

Airlines fee disclosure rule lawsuit overview: 

• Who: American Airlines, Delta Air Lines, United Airlines, three other carriers and their industry trade group Airlines for America filed a lawsuit against the U.S. Department of Transportation. 
• Why: The airlines want to overturn a new Department of Transportation rule that would require them to disclose upfront to consumers any charges related to baggage and/or canceling or changing a reservation. 
• Where: The lawsuit was filed in the 5th U.S. Circuit Court of Appeals in New Orleans.

U.S. airlines have filed a lawsuit in an effort to overturn a new rule requiring them to disclose to consumers upfront any charges related to baggage and/or canceling or changing a reservation. 

Airlines argue the new U.S. Department of Transportation rules — which were announced by the Biden administration last month — would confuse consumers by providing them too much information while purchasing tickets, reports the Associated Press. 

The lawsuit was reportedly filed by the airlines American, Delta, United and three other carriers, along with their industry trade group, Airlines for America.

The Transportation Department has vowed to defend the rule, arguing it will save consumers more than $500 million a year by protecting them from “hidden junk fees” and ensuring they can see the full price of a flight prior to buying a ticket, reports the AP. 

The new rule will reportedly require airlines to show fees related to baggage and/or canceling or changing a reservation on the first website page where a price for a flight is quoted. 

Airlines for America argues airlines fee disclosure rule will ‘greatly confuse’ consumers

Airlines for America, in a statement earlier this week, said the new rule will “greatly confuse” consumers who they argue will be “inundated with information that will only serve to complicate the buying process,” reports the AP. 

Among the six largest airlines in the U.S., Southwest was the lone holdout from the complaint, with the airline reportedly saying the rule will not affect its business since passengers are able to check two bags for free and it doesn’t charge fees for canceling or changing a reservation. 

“Overall, we support every airline’s right to price its products but believe fees should be clearly and consistently disclosed, so consumers can make informed purchasing decisions,” Southwest said, as reported by AP News. 

The new Department of Transportation rules will also require airlines to provide automatic cash refunds for eligible canceled and delayed flights, without a passenger needing to specifically request them. 

Have you been charged a fee that wasn’t initially disclosed by an airline? Let us know in the comments.

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