In a recent development, several major US airlines and their industry trade group, Airlines for America, have filed lawsuits against the US Transportation Department over new regulations mandating up-front disclosure of certain fees. The lawsuit was filed at the 5th US Circuit Court of Appeals by Airlines for America and the carriers, including American Airlines, Delta Air Lines, United Airlines, and JetBlue Airways. The final rules require carriers and ticket agents to clearly communicate their extra charges up front for checked luggage and carry-on bags, as well as for canceling or changing reservations.
The airlines argue that the regulations are an overreach by the Transportation Department and could confuse customers with complicated shopping processes. They claim that they have already made significant investments in their websites and apps to make it easy for passengers to book tickets tailored to their specific needs, with fees disclosed before a purchase is made.
The new rules are set to go into effect on July 1, and the Transportation Department estimates that they could save consumers more than $500 million a year. According to the Bureau of Transportation Statistics, airlines collected nearly $5.5 billion in baggage fees last year alone.
Consumer advocate John Breyault, vice president of public policy for the National Consumers League, said he was disappointed but not surprised to see the lawsuit. He noted that the rule makes it easier for travelers to do an 'apples-to-apples' comparison of flight costs and puts an end to 'discount bait-and-switch tactics' that could lead consumers to believe they were getting a better deal than the final price after fees.
The Biden administration has been campaigning against 'junk fees' beyond just airlines, targeting credit card late fees, resort fees, cable company charges, and convenience fees for tickets to live events.