The association representing major airline carriers filed a lawsuit against the Biden administration Tuesday over a new rule the Department of Transportation finalized last month.

Taking effect in October, the rule requires airlines to be more transparent about fees for bags, select seats and other amenities before a ticket is booked.

What You Need To Know

  • Airlines for America is suing the Department of Transportation over a new ancillary fee rule scheduled to take effect in October

  • The new rules require airlines and ticketing agents to let consumers know up front what they will be charged for bags, select seats or for changing or canceling a reservation

  • The airline association said the DOT is exceeding its authority

  • “DOT has failed to establish that consumers are unable to obtain information about ancillary fees,” the association told Spectrum News

“U.S. airlines care deeply about the customer purchasing experience form first search to final purchase and invest heavily in their websites and mobile apps to ensure both transparency of all costs and ease of use for each customer with a purchase path tailored to that customer’s specific choices,” an Airlines for America spokesperson said in a statement to Spectrum News.

“Airlines already provide consumers with complete disclosure of all fees associated with air travel before they purchase a ticket," the statement continues.

The association said the new ancillary fee rule the Department of Transportation plans to enact will confuse customers. In the lawsuit, the association says the DOT has acted beyond its authority.

“DOT has failed to establish that consumers are unable to obtain information about ancillary fees,” the association told Spectrum News. “To the contrary, consumers are well aware of the existence of ancillary service fees. Airlines go to great lengths to make their customers knowledgeable about these fees.”

The DOT rules will require airlines and ticketing agents to let consumers know up front what they will be charged for bags, select seats or for changing or canceling a reservation. The fees must be displayed along with the fare before a ticket is purchased and cannot be provided through a hyperlink.

The Biden administration estimates the new policy on upfront fees will save consumers more than $500 million every year.

The new policy stems from an Executive Order on Promoting Competition President Biden signed in 2021 that instructed the DOT to find ways to make markets more fair, transparent and competitive.

Airlines for America filed the lawsuit in the U.S. Court of Appeals for the Fifth Circuit on Friday with Alaska Airlines, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways and United Airlines listed as as co-petitioners.

The ancillary fee rule “is arbitrary, capricious, an abuse of discretion and otherwise contrary to law,” the association’s petition alleges. “Petitioners seek an order vacating and setting aside the Final Rule.”