Major US Airlines File Lawsuit Against Government Over Controversial Fee Regulation

Airlines Sue U.S. Government Over New Air Travel Fee Transparency Rule

Major U.S. airlines, including American Airlines, Delta Air Lines, and United Airlines, have filed a lawsuit against the U.S. Transportation Department to block a new rule that requires airlines to disclose all “surprise junk fees” upfront to passengers before they purchase their tickets. The lawsuit, filed in the 5th U.S. Circuit Court of Appeals in New Orleans, claims that the agency is overstepping its power by attempting to regulate private business operations in a competitive marketplace.

The new rule, announced on April 24, aims to save travelers over $500 million a year in fees by ensuring that airlines clearly and accurately disclose all additional charges. Southwest Airlines, known for not charging fees for checked baggage or flight changes, did not join the lawsuit but expressed support for transparent fee disclosure.

Transportation Secretary Pete Buttigieg defended the rule, stating that airlines should compete for passengers’ business based on service and not on hidden fees. The U.S. Department of Transportation vowed to vigorously defend the rule, emphasizing the importance of protecting consumers from hidden fees.

With airlines making an estimated $33 billion in checked bag fees alone in 2023, the new rule is seen as a step towards greater transparency and consumer protection in the air travel industry. Despite the backlash from airlines, the government remains committed to enforcing the rule to benefit air travelers nationwide.