Several major U.S. airlines, including American, Delta, and United, have filed a lawsuit against the Biden administration to block a new rule aimed at increasing transparency regarding fees charged to passengers. The rule, announced by the U.S. Transportation Department, requires airlines to disclose charges for baggage and reservation changes upfront during the ticket-buying process.
The airlines, along with their industry trade group Airlines for America, argue that the rule would overwhelm consumers with unnecessary information, making the purchasing process more complicated. They claim that airlines already make efforts to inform customers about fees and that the new rule exceeds the government's authority by interfering with private business operations in a competitive market.
The Transportation Department defended the rule, emphasizing that it aims to protect consumers from hidden fees and ensure that travelers have a clear understanding of the total cost of their flights before making a purchase. The agency estimates that the rule could save consumers over $500 million annually.
While five of the nation's largest airlines are challenging the rule in court, Southwest Airlines has chosen not to participate in the legal action. Southwest stated that the rule would have minimal impact on its operations as the airline already offers two free checked bags and does not charge additional fees for reservation changes or cancellations.
In response to the lawsuit, the Transportation Department reiterated its commitment to defending the rule and criticized the airline industry for opposing measures that promote transparency and consumer protection. The case has been filed in the 5th U.S. Circuit Court of Appeals in New Orleans.
Despite the legal challenges, the Transportation Department remains steadfast in its efforts to implement the new rule and ensure that air travelers are fully informed about the costs associated with their flights.
