Major airlines and an industry trade association have filed a petition to the U.S. Fifth Circuit Court of Appeals, urging the court to overturn a new Department of Transportation (DOT) rule that requires earlier disclosure of add-on fees during flight bookings. The trade group Airlines for America, along with Alaska, American, Delta, Hawaiian, JetBlue, and United airlines, argue that the DOT exceeded its legal authority and that the rule is arbitrary and an abuse of discretion.
The airline fee disclosure rule was introduced by the Biden administration in September 2022. The rule mandates that airlines and online travel agencies must disclose fees for seat selection, checked baggage, and other add-ons upfront, alongside the airfare. This change aims to provide transparency to consumers by ensuring they know the full cost of their ticket at the time of comparison shopping.
President Joe Biden emphasized the importance of transparency, stating, “You should know the full cost of your ticket, right when you’re comparison shopping.” However, the airlines and trade association believe that the rule will confuse consumers and complicate the buying process. They argue that airlines already provide complete disclosure of all fees associated with air travel before a ticket is purchased.
Airlines for America issued a statement to CNBC, expressing their opposition to the rule. They claim that the DOT’s attempt to regulate private business operations in a thriving marketplace exceeds its authority. They argue that the rule is a “bad solution in search of a problem.”
While the airlines’ concerns about potential confusion among consumers are valid, it is crucial to consider the broader implications of the rule. Transparency in pricing is essential for consumers to make informed decisions. Without upfront disclosure of fees, passengers may be caught off guard by unexpected charges at the time of checkout. By requiring airlines and online travel agencies to include add-on fees alongside the airfare, the rule allows for clearer and more transparent pricing.
Moreover, studies have shown that hidden fees can significantly impact consumers’ perception of trust and satisfaction with airlines. A survey conducted by Consumer Reports found that 85% of respondents believed that airlines should include all fees in their advertised prices. This sentiment reflects the desire for greater transparency and the need to avoid hidden costs that can lead to customer dissatisfaction.
While the airlines argue that they already provide fee disclosure before ticket purchase, it is important to acknowledge that not all fees are consistently presented in a clear and upfront manner. Some airlines may bury certain charges in the fine print or only reveal them during the checkout process. The DOT’s rule ensures that all fees are presented alongside the airfare, providing consumers with a comprehensive understanding of the total cost.
In conclusion, the petition filed by major airlines and the trade association challenges the DOT’s new rule on airline fee disclosure. While the airlines express concerns about confusion and complicating the buying process, it is crucial to prioritize transparency and consumer protection. Studies show that consumers value upfront disclosure of fees, as it allows for informed decision-making and reduces the risk of unexpected charges. The rule aims to address these concerns by requiring airlines and online travel agencies to include add-on fees alongside the airfare. By doing so, passengers can make more informed choices and have a clearer understanding of the total cost of their tickets.
