WASHINGTON — US airlines have filed a lawsuit to prevent the Biden administration from demanding more transparency about the fees airlines charge their passengers. They say a new rule would confuse consumers by giving them too much information during the ticket purchasing process.
The U.S. Department of Transportation said Monday it will vigorously defend the rule against what it called “hidden junk costs.”
American, Delta, United and three other airlines, along with their industry trade group, sued the Transportation Department in a federal appeals court on Friday, asking the court to overturn the rule.
The trade group, Airlines for America, said the Department of Transportation is overstepping its authority by trying to “regulate private business activity in a booming market.” The airlines said the administration has not shown that consumers are already unable to obtain reimbursement information.
“Airlines are making every effort to inform their customers of these fees,” Airlines for America said Monday. “The Department of Transportation’s add-on fee rule will greatly confuse consumers, who will be inundated with information that will only complicate the purchasing process.”
The Transportation Department announced the new rule on April 24. Airlines and travel agencies would therefore have to make all costs for baggage and canceling or changing a reservation public in advance. Airlines must list costs on the first website page where they list a price for a flight.
The agency estimates the rule will save consumers more than $500 million a year.
“We will vigorously defend our rule to protect people from hidden junk fees and ensure travelers can see the full price of a flight before purchasing a ticket. “Many air travelers will be disappointed to hear that the airline lobby is filing a lawsuit to end this common sense protection,” the ministry said on Monday.
Of the nation’s six largest airlines, only Southwest has not joined the legal challenge, which was filed in the 5th U.S. Circuit Court of Appeals in New Orleans. Southwest said the rule will have little to no effect because the Dallas-based airline lets passengers check two bags for free and has never charged extra fees for changing or canceling reservations.
“Overall, we support every airline’s right to set prices for its products, but we believe fees should be clearly and consistently disclosed so that consumers can make informed purchasing decisions,” Southwest said.