Court blocks DOT rule on airline fee disclosures

The U.S. Court of Appeals has temporarily blocked a rule from the Department of Transportation (DoT) that mandates upfront disclosure of airline fees and final travel costs for consumers. According to a report by Reuters, the court ruling halts the new DoT rule pending a full review. This development is considered a significant setback for the Biden administration's efforts to enhance consumer protections regarding so-called "junk fees" associated with ticket pricing.

In April, a DoT final rule required airlines and ticket agents to fully disclose service fees along with the base airfare ticket cost. Intended to clarify final travel costs for travelers, the rule faced opposition from the airline industry, which argued it would create confusion among customers.

A three-judge panel of the 5th U.S. Circuit Court of Appeals supported the airlines' position and granted a request for a temporary block, writing that the rule "likely exceeds DoT’s authority and will irreparably harm airlines." The industry had contended that airlines would have to "spend millions" to revise their pricing platforms to clarify baggage, rescheduling, cancellation, and other fees for consumers.