Major airlines in the United States, including Delta, American Airlines, and United, have filed a lawsuit against the Department of Transportation (DOT) over new regulations that require upfront disclosure of fees. The lawsuit, filed by the Airlines for America lobbying group on behalf of six major airlines, alleges that the DOT has overstepped its authority and that the new rule is arbitrary and capricious.
The DOT implemented the new rule last month, aiming to enhance transparency and protect consumers from unexpected fees. The rule mandates that airlines disclose service fees alongside airfare, ensuring that consumers are fully aware of the total cost of a flight before making a purchase. However, the airlines argue that the new rule will only serve to confuse consumers and that they already provide sufficient information about fees.
The airlines’ lawsuit claims that the DOT’s attempt to regulate private business operations exceeds its legal authority. They contend that the rule is unnecessary and that airlines already disclose all fees associated with air travel before ticket purchase. The DOT, in response, has stated that it will vigorously defend the rule, which it believes will protect consumers from hidden fees and ensure that travelers have a clear understanding of the full cost of a flight.
The DOT estimates that consumers are currently overpaying by $543 million annually due to hidden fees. The agency believes that the new rule will help to prevent airlines from profiting from surprise charges at the airport, such as baggage fees. The rule also prohibits airlines from advertising promotional discounts that do not include all mandatory carrier-imposed fees, a practice the DOT has characterized as bait-and-switch tactics.
One airline, Southwest Airlines, has expressed support for certain provisions in the DOT’s proposal but has not joined the lawsuit. In 2022, U.S. airlines collected nearly $6.8 billion in baggage fees, highlighting the significant revenue airlines generate from these charges. The DOT’s new rule, if upheld, has the potential to significantly impact the airline industry and enhance transparency for consumers.
