Quantcast

Court halts enforcement of new airline fee disclosure rules

Flight made emergency landing in Denver after reported animal strike and engine fire
General Dynamics says G800 jet receives FAA, EASA certifications
United Airlines doubles down on Chicago roots with new O'Hare billboards
Gatwick airport strikes, Easter 2025: will my flight be cancelled?
Boarding passes and check-in could be scrapped in air travel shake-up
European air traffic warning means summer delays for holidaymakers
The EU rule change that could affect millions of Brits when their flight is delayed or cancelled
Delta Earnings Land Soon. Why They’re Key for Airline Stocks and the Economy.
Avelo Airlines to Operate Deportation Flights, Hiring Flight Attendants
Travel chaos 2025: all the strikes and disruption expected across Europe
Qatar Airways accelerates Starlink wifi implementation
Southwest Airlines extends flight schedule through early April 2025
Cathay Pacific reaches 3,400 pilots this year, with low resignation rate of 2.9%
Qatar Airways Nears Boeing 777 Fleet-Wide Starlink Upgrade
United receives FAA approval for first Starlink-equipped planes
50 New Routes Launching In April 2025
Qantas launches mammoth Asia flight sale including Bali and Japan
New Update from Air Canada, WestJet, American Airlines, Delta, United, Southwest, Alaska, JetBlue Airways, and Sunwing: Airline Capacity Between Canada and US Slashed as Bookings Plummet Seventy Per Cent
Delta Cuts Two Domestic Routes
United Airlines Technicians Reject ‘Dead on Arrival’ Contract Proposal, Teamsters Say
The State of the Asia Pacific Airline Industry
Spirit Airlines to add Detroit nonstop flight out of Bradley International Airport
Major airline to launch new direct flights from Scotland to North America
Ryanair launches new ‘prime’ membership which saves passengers more than £400 a year
Judge Orders Boeing to Trial on 737 MAX Case
Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Court halts enforcement of new airline fee disclosure rules
Research
Webp txr36ytg6uuvd13i8xrjnuempd4m
Gary Leff Chief Financial Officer | View from the Wing

In April, the U.S. Department of Transportation (DOT) issued a new rule mandating airlines and ticket agents to fully disclose all add-on costs for baggage, changes, and cancellations upfront at the first instance of displaying itineraries and fares. The rule also requires airlines to automatically and promptly refund passengers when services like checked baggage and Wi-Fi are not delivered as promised.

Airlines sued to stop the rule, and the U.S. Court of Appeals for the 5th Circuit has issued an injunction suggesting that the carriers are likely to prevail on the merits and suffer irreparable harm if the rules go into effect in the meantime. DOT itself estimates the cost to comply with the new rules in the hundreds of millions. The full court will hear the case.

The rule aims to enhance transparency, but some argue it may add complexity rather than clarity. "For most passengers, at best it’s additional clutter on the screen likely to fade into the background," said one observer. Consumers cannot opt out of these fee displays unless they certify that no one on their reservation will travel with a carry-on bag or checked bags.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Some argue that fees are already well-disclosed. "First checked bag fees have been in place for 16 years and everyone knows to expect them," noted another commentator. However, there have been instances where airlines did not adequately disclose fee changes. For example, JetBlue quietly raised bag fees twice this year without immediate public notice.

The new rules could potentially increase wait times for customer service calls as agents would need more time to read out required fee information. DOT does not assume airlines will add call center agents to address this issue, which could exacerbate telephone hold times.

The government has specified certain fees that must be disclosed while omitting others, such as oversize or overweight baggage fees, which vary by airline policies. Critics argue that fixing these disclosures in place does not account for changing fee structures over time.

A major point of contention is whether the benefits of the rule outweigh its costs. DOT claims that consumers will save over half a billion dollars annually by avoiding overpayment in airline fees due to increased transparency. However, critics challenge this assertion, arguing that DOT's estimated savings primarily come from reduced time spent searching for fees during ticket purchases.

Critics also suggest that instead of enforcing conformity through standardized fee displays, encouraging competition would better serve consumer interests. "It would be better to focus on information on seat width and pitch available, quality of Wi-Fi... meal service etc." argued one industry analyst.

While there is support for requiring refunds when services are not provided as promised, many believe that standardizing how specific charges are displayed across all platforms may stifle competition and innovation within fare search processes.

Organizations Included in this History
More News

Southwest Airlines, the largest carrier in the U.S. by passengers, operates approximately 4,000 daily flights across its network.

Apr 23, 2025

The story of Kalitta Air and its founder, Conrad "Connie" Kalitta, is rooted in a deep passion for drag racing that eventually led to the establishment of an international cargo airline.

Apr 23, 2025

The New York to Los Angeles flight route is one of the busiest in the United States.

Apr 23, 2025

The Airbus A220 is making strides in Europe, particularly with three airlines operating some of the longest routes on this regional jet.

Apr 23, 2025

Air India, the leading airline connecting India and the United Kingdom, faces increasing competition from British Airways, Virgin Atlantic, and India's low-cost carrier IndiGo.

Apr 23, 2025

Delta Air Lines' maintenance arm, Delta TechOps, has secured a new contract with UPS Airlines for service on its Pratt & Whitney PW2000 engines.

Apr 23, 2025