Airlines Sue Federal Government over New Rules to Disclose Airline Fees

Airlines, including Alaska, American, Delta, Hawaiian, JetBlue and United, along with the industry lobby Airlines For America (A4A), have filed a lawsuit against the federal government over new rules that require carriers to disclose all airline fees upfront. This includes fees for checked and carry-on bags as well as change and cancellation fees.

The lawsuit was filed in the U.S. Fifth Circuit Court, alleging that the Department of Transportation (DOT) exceeded its authority in announcing the new rule and calling it an “arbitrary, capricious” change. The DOT’s estimate is that this rule change will save consumers half a billion dollars each year by requiring carriers to be more transparent about their pricing.

According to A4A’s statement, the ancillary fee rule by the DOT will greatly confuse consumers and complicate the buying process. They argue that DOT’s attempt to regulate private business operations in a thriving marketplace is beyond its authority. A4A also calls the DOT ancillary rule a bad solution in search of a problem since it does not solve any underlying issues with baggage or change/cancellation fees.

The Department of Transportation did not immediately respond to a request for comment on the lawsuit.