Airlines for America Sues DOT Over New Fee Disclosure Rule

US Airlines are suing the Department of Transportation over its new fee disclosure rule. Trade group Airlines for America filed the lawsuit Friday claiming that the new fee disclosure rule “will greatly confuse consumers.” 

The lobbying group represents US airlines including American Airlines, United Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, and Alaska Airlines. 

Airlines for America noted that consumers are already aware of the extra fees. 

The group wrote, “Airlines go to great lengths to make their customers knowledgeable about these fees. In addition to the disclosures required by existing DOT (Department of Transportation) regulations, airlines engage in competitive advertising and emphasize ancillary fee discounts and benefits when they promote their loyalty programs.” 

New Fee Disclosure Rule

The DOT finalized the new fee disclosure rule last month to provide transparency to travelers and avoid unexpected fees. 

The airline group said on Monday that the DOT’s “attempt to regulate private business operations in a thriving marketplace is beyond its authority.”

However, the agency is adamant in defending its new fee disclosure rule. The DOT says  that it “will vigorously defend our rule protecting people from hidden junk fees and ensuring travelers can see the full price of a flight before they purchase a ticket.”

According to the agency, travelers are overpaying airlines $543 million annually. It’s a practice among US airlines to charge higher fees to check bags at the airport. And earlier this year, many US airlines even increased their prices on checked bags. 

With the new rule, airlines are required to disclose extra fees before customers finalize transactions. This rule would include the price of checked bags, carry-on bags, and changing or canceling reservations. 

The DOT claims that this ends “bait-and-switch tactics some airlines use to disguise the true cost of discounted flights.” Here, airlines are prohibited from advertising reductions on “low base fare that does not encompass all obligatory carrier-imposed fees.”