Airlines challenge new rule requiring earlier disclosure of add-on fees when booking flights

From CNBC: 2024-05-13 13:43:14

Major airlines, including Alaska, American, Hawaiian, Delta, JetBlue, and United Airlines, are challenging the Department of Transportation’s new rule for earlier disclosure of add-on fees when booking flights. They argue the rule is arbitrary and exceeds legal authority, filing a petition in the U.S. Fifth Circuit Court of Appeals.

The new rule, introduced by the Biden administration in September 2022, requires airlines and online travel agencies to disclose fees upfront alongside airfare. This aims to provide consumers with full cost transparency during comparison shopping. However, Airlines for America believes the rule will confuse consumers and complicate the buying process.

President Joe Biden emphasized the importance of knowing the full ticket cost at the time of comparison shopping. Airlines for America stated that airlines already disclose all fees before ticket purchase, criticizing the DOT’s attempt to regulate private business operations in a thriving marketplace. They describe the rule as a bad solution in search of a problem.



Read more at CNBC: Airlines challenge Biden administration fee disclosure rule