Major U.S. airlines are suing the Department of Transportation over new rules requiring advance disclosure of airfares and recent clashes between airlines and the Biden administration.
Airlines for America, along with American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines, filed the lawsuit late Friday in the U.S. Court of Appeals for the Fifth Circuit, according to a copy of the lawsuit seen by Reuters. I woke you up.
USDOT issued a final rule last month requiring airlines and ticket agents to disclose service fees in addition to airfare, saying it will help consumers avoid unnecessary or unexpected fees.
The aviation group said in a statement on Monday that the ministry’s rules were confusing to consumers and that “any attempt to regulate the operations of private companies in a thriving market is beyond the agency’s authority.”
The airline’s lawsuit says the rule is “arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.”
The DOT said Monday that it will “vigorously defend rules that protect people from hidden junk fees and ensure that travelers see the full cost of their flight tickets before purchasing them.” The DOT said last month that the new rules would make it cheaper for many consumers to travel by air.
The agency says consumers pay $543 million in excess fees annually, and airlines receive additional revenue from consumers who are surprised by the fees and “have to pay higher fees at the airport to check their bags.” It is said that they are getting .
Major airlines charge higher fees to check baggage if travelers don’t pay in advance or wait until flight time. Earlier this year, many major U.S. airlines increased fees for checked baggage.
USDOT said fees for baggage and flight changes “must be disclosed separately when fare and schedule information is first provided on an airline’s online platform and cannot be displayed through a hyperlink.” .
USDOT also said the rule would eliminate “bait-and-switch tactics used by some airlines to disguise the true cost of discounted tickets.” The law prohibits airlines from advertising promotional discounts on “lower base fares that do not include all mandatory carrier-imposed fees.”
USDOT did not immediately comment. The airline group called the rule “a bad solution to a problem.” Southwest Airlines expressed support for the USDOT’s proposed provisions but did not participate in the lawsuit.
The airline group said airlines already fully disclose all fees associated with air travel to consumers before purchasing a ticket.
U.S. airlines collected about $6.8 billion in baggage fees in 2022, and $5.5 billion in the first nine months of 2023.
The rule requires airlines to notify consumers that their seats are guaranteed and they do not have to pay extra. Airlines must provide the following notifications: “The seat is included in the fare. There is no need to purchase a seat reservation when traveling.”
Airlines are not objecting to another rule finalized last month by the USDOT that mandates automatic cash refunds for canceled flights if passengers choose not to take a new flight.
President Biden said last month that the mandate would protect passengers “from surprise charges,” saying “too often airlines drag their feet on refunds or rip passengers off with junk fares.” insisted.
