by Mia Taylor
Last updated: 3:20 PM ET, Tue July 30, 2024
The Biden Administration’s efforts to require that airlines provide upfront disclosure of all fees associated with ticket purchases has been blocked by a U.S. appeals court.
The proposed rule, issued by the U.S. Transportation Department in April, is designed to provide more transparency in ticketing costs for consumers and would have required airlines and ticket agents to reveal all service fees alongside base airfare costs.
That would have meant carriers and ticket agents provide the cost up front
for such things as checked and carry-on bags and canceling or changing a reservation. The DOT estimated that the new rules would save American travelers more
than $500 million annually.
As part of the measure, the administration said there would be an
October 30 deadline for airlines to implement the transparency measure
and disclose fees up front. The fees would need to be disclosed both on
an airline’s website and on third-party ticket platforms.
The ruling from a three-judge panel of the Fifth U.S. Circuit Court of Appeals, however, says the proposed measure "likely exceeds DOT's authority and will irreparably harm airlines.”
As part of its opinion, the court granted the industry a request for a temporary block, according to a report from Reuters.
The matter must now be reviewed in a hearing during the court’s next available session for oral arguments.
A coalition of airlines filed suit to block the administration’s effort in May. The airlines that are a party to the suit include American Airlines, Delta Air Lines, United Airlines, JetBlue, and Alaska Airlines. The trade groups Airlines for America and the International Air Transport Association (IATA) were also part of the group that brought legal action.
Representatives from the airline industry have said its objection to the requirement is based on
the fact that it would require spending “millions” to redesign websites
to come into compliance.
Reuters reported that the airline group declined to comment on this week’s ruling.
Meanwhile, a DOT spokesperson said airlines could still voluntarily comply with what the department called a common sense rule “that simply requires them to keep their customers fully informed."
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