Biden administration rule on airline fees blocked by federal court

A U.S. Department of Transportation rule requiring airlines to be more transparent about additional fees appears to be in jeopardy.

On Monday, a panel of federal judges temporarily halted the Biden administration’s new rule, note that they felt the rule “likely exceeds DOT’s authority and would cause irreparable harm to airlines.”

The ruling by the 5th U.S. Circuit Court of Appeals means airlines can hold off on making major changes to how they display prices, fees and fare rules — at least until the case is resolved.

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Regulations on price transparency

According to the law, First published in AprilAirlines and third-party ticket sellers will be required to disclose significant additional charges immediately when airfares are first displayed.

Effective at the end of April 2025, the new guidelines will require carriers to more clearly disclose ancillary fees, such as fees for the first and second checked bags, large carry-on bags, and change and cancellation fees. These fees will have to be displayed when customers first see the fare.

Airlines will also be required to use DOT-standard language to ensure passengers understand they have the right to sit on a flight, even if they do not pay for seat selection.

Airlines, lobby groups sue

A group of six US airlines and the US industry’s leading lobbying group quickly sue the Biden administration, called it a “poor solution in search of a problem” that would “confuse customers” and argued that the measure exceeded the DOT’s authority. Alaska Airlines, JetBlue, and industry lobbying groups Airlines for America and the International Air Transport Association joined three legacy U.S. airlines (American Airlines, Delta Air Lines, and United Airlines) in the lawsuit.

The lawsuit “clearly demonstrates that this rule exceeds DOT’s authority,” the judges wrote Monday. They also agreed to temporarily halt DOT’s rule pending a final decision.

Transportation Secretary Pete Buttigieg vowed to continue pushing the DOT to change price transparency despite Monday’s appeals court ruling.

“The airline lobby is trying to link this to lawsuits, but we will not back down from protecting passengers,” Buttigieg wrote on social media platform X. “Airlines are completely wrong to assume that simply disclosing their fees will ’cause them irreparable harm’.”

The Biden administration has taken a tougher stance on airlines to protect consumers as part of a larger fight against “junk fees.” That includes recently enacting stricter refund rules. codified in the Federal Aviation Administration reauthorization bill passed by Congress in May. DOT has also implemented dashboard in 2022 show transparently Airlines have assured passengers in past significant cancellations or delays within the carrier’s control.

The status quo remains the same — for now.

While the ultimate fate of the DOT’s pre-pricing rule is technically unclear, the current suspension means it won’t be taking effect anytime soon.

That means you should continue to carefully review the fare rules of any flight you book, checking for everything from extra fees for large carry-on bags and seat selection to other extra fees that apply to some low-cost airlines, such as extra fees for printing boarding passes or fees for speaking directly to a customer service representative.

It’s worth noting that many airlines — including low-cost carriers — have eliminated some of the extra fees that passengers have long complained about.

For example, JetBlue recently published This will allow even basic economy class (“Blue Basic”) customers to bring a large carry-on bag on board at no extra charge. Spirit Airlines and Frontier Airlines both change and cancellation fees have been eliminated for most tickets, and Frontier has announced profound changes on how the airline presents its fees, fares and ancillary packages — although the airline’s CEO noted this spring that the move was Are not Driven by DOT.

However, it is worth noting that most major US airlines increased checked baggage fees in the first half of 2024. In fact, according to data from United States Department of TransportationTogether they made over $7 million in 2023 from checked baggage alone.

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