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.