Major Airlines Sue Federal Government Over New Fee Disclosure Rules

Major airlines have taken legal action against the federal government regarding recently proposed regulations mandating upfront disclosure of all airline fees. These fees encompass charges for checked and carry-on bags, as well as change and cancellation fees. Filed on Friday in the U.S. Fifth Circuit Court, the lawsuit involves carriers Alaska, American, Delta, Hawaiian, JetBlue, and United, alongside industry lobby Airlines For America.

The airlines argue that the Department of Transportation (DOT) overstepped its bounds by implementing the new rule, branding it as “arbitrary” and “capricious.” Transportation Secretary Pete Buttigieg defended the regulations, emphasizing the importance of transparent pricing for consumers. He stated, “Healthy competition requires that as a consumer you can comparison shop, which means knowing the real price of a trip before and not after you buy.” According to DOT estimates, the rule change is anticipated to save consumers approximately half a billion dollars annually.

Airlines For America released a statement condemning the new regulations, claiming they would only serve to confuse consumers and complicate the purchasing process. They assert that DOT’s attempt to regulate private business operations within a thriving marketplace exceeds its authority. The statement further contends that the fee disclosure rule is a misguided solution in search of a nonexistent problem.

As of now, the Department of Transportation has yet to provide a response to the lawsuit.