US Airlines Request Full Appeal of DoT’s Fee Disclosure Decision
Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways, United Airlines, and the trade group Airlines for America (A4A) have requested a full appeals court review of a January ruling that affirmed the US Department of Transportation’s (DOT) authority to mandate airline fee disclosure. The airlines argue that the rule would significantly alter their operations and increase costs without providing clear benefits.
In January, the Fifth Circuit Court of Appeals ruled against the DOT’s 2024 fee disclosure rule, which required airlines to disclose service fees upfront for baggage, flight changes, and cancellations. The three-judge panel found that while the DOT had the authority to regulate unfair practices, it had not followed proper procedures, including allowing airlines to comment on the impact of the rule. As a result, the court sent the regulation back to the DOT for procedural corrections.
The airlines and A4A contend that the rule would disrupt customer interactions, impose high costs, and provide no proven benefit. The DOT’s intent was to ensure passengers have clear access to information about fees before purchasing tickets. The final regulation is set to be published on April 24, 2024. In May, airlines filed lawsuits to block the rule, with the appeals court temporarily halting its enforcement in July.
A November 2024 US Senate report highlighted concerns over the rise in ancillary fees and recommended stronger disclosure requirements to improve transparency and prevent deceptive practices.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com