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Major U.S. airlines sued the Department of Transportation on Friday over a rule requiring them to disclose upfront fees for things like baggage and itinerary changes.
The Biden administration has made it a priority to combat the hidden costs it calls “junk fees” across industries, from banks to event companies.
The rules, which go into effect July 1, require airlines to display fares when consumers first see them, rather than as a hyperlink or a separate page. The rule also requires airlines to notify passengers that they are not required to purchase a specific seat for their trip and to include all mandatory fees when advertising fares.
Dot Said The rule could save consumers more than $500 million annually in airline “unnecessary or unexpected fees,” it was announced in late April.
Fees are a major source of income for airlines. DOT said its data shows airline revenue from baggage fees alone jumped more than 30% between 2018 and 2022. Last year, airlines made about $5.5 billion in baggage fees, according to the Bureau of Transportation Statistics, and many airlines have increased baggage fees this year.
The airlines suing include United Airlines, Delta Air Lines, American Airlines, JetBlue Airways and Alaska Airlines, as well as smaller industry peers and lobbying groups, alleging that price transparency confuses consumers. He claims to do so. Southwest Airlines, which accepts two checked bags for free and has no change or cancellation fees, did not join this group.
The lobbying group Airlines for America said in a statement Monday that the rule is “a bad solution in search of a problem.” A cross-industry lobbyist group is fighting the Biden administration’s war on junk fees through litigation.
Airline lobbies succeeded in applying pressure 2018 Congress The move is to reverse plans for bag limits and change fees that the Trump administration opposed.
In a DOT statement regarding the lawsuit, the agency said it intends to “vigorously defend” the new rule.
“Many air travelers will be disappointed to learn that airline lobbies are suing to end these common-sense safeguards,” the Department of Transportation said in a statement.