Major U.S. airlines, represented by Airlines for America, have filed a lawsuit against the U.S. Department of Transportation (USDOT) over a recent mandate requiring upfront disclosure of airline fees.
The lawsuit, filed in the U.S. Fifth Circuit Court of Appeals in Louisiana, challenges the new rule, arguing it would confuse consumers and exceed the department’s authority.
The USDOT issued the final rule last month, aiming to enhance transparency by requiring airlines and ticket agents to disclose service fees alongside airfare prices. The intention was to help consumers avoid unexpected charges and make more informed decisions when booking flights.
The airlines contend that the rule is “arbitrary” and “contrary to law,” asserting that they already provide comprehensive fee information to customers before ticket purchase. They argue that the USDOT’s attempt to regulate private business operations in a competitive marketplace goes beyond its jurisdiction.
The USDOT defended the rule, stating its commitment to protecting consumers from hidden fees and ensuring transparency in air travel costs. The department emphasized that the rule would result in cost savings for passengers, with an estimated annual reduction of $543 million in fees paid by consumers.
The rule specifically targets practices such as charging higher fees for checked baggage at the airport and advertising misleading promotional discounts. It mandates that airlines disclose fees upfront, without relying on hyperlinks, and provide clear information about seat assignments included in fares.
Southwest Airlines, though supportive of some provisions in the USDOT proposal, did not join the lawsuit.
The legal dispute highlights the ongoing tension between airlines and regulatory authorities over consumer protections and industry regulations, with implications for how air travel costs are presented and understood by passengers.
