Quantcast

Court halts enforcement of new airline fee disclosure rules

Asia's airlines blame supply chain woes for disrupted operations
Qantas and Qatar Airways: Planned partnership in the Australian aviation industry under the microscope
Riyadh Air plans new jet order decision early next year
Calls for a blanket ban on politicians receiving free flight upgrades
Wizz Air Loses Challenge Against EU-Approved Romanian Aid for TAROM
Southwest, Other Airlines Plan a Shake-Up. Why They Need More to Boost Their Stocks.
One of Boeing's biggest customers leveled fresh criticism over ongoing 737 Max delivery delays
Low-Cost Airlines Innovate with Subscription Models
LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
American Airlines Technical Operations, Fleet Service, Cargo and Central Load Planning team members ratify new agreement
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
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

Recently, Flying Food Group, Inc. held a celebration at its LAV facility to mark Hispanic Heritage Month.

Oct 29, 2025

Flying Food Group, Inc. recently held an employee appreciation event at its LIH facility, coinciding with Halloween festivities.

Oct 29, 2025

Emirates Airline hosted members of UAE Team Emirates XRG at its Group Headquarters, marking the team's successful season in international cycling.

Oct 28, 2025

Amazon has announced that its KSBD Air Hub in San Bernardino recognized its September High Flyers for their outstanding commitment to the company's 16 Leadership Principles.

Oct 28, 2025

Amazon announced that employees at its KSBD Air Hub in San Bernardino participated in the 2025 Pink on Parade for Breast Cancer Awareness Month.

Oct 28, 2025

The ShebaMiles loyalty program, operated by Ethiopian Airlines for over 26 years, has more than 5.38 million members and offers four membership tiers: Blue, Silver, Gold, and Platinum.

Oct 28, 2025