AUSTIN, Texas – Several major airlines are pushing back against a new regulation from the Biden administration aimed at increasing transparency in airline pricing. The regulation would require airlines to disclose additional fees upfront, including charges for luggage and reservation changes, which the government refers to as “surprise junk fees.”
Airlines, including American, Delta, United, JetBlue, Alaska, and Hawaiian, have filed a petition challenging the rule, arguing that it is arbitrary and outside the Transportation Department’s authority. The Airlines for America trade group claims that implementing the rule would only confuse customers and complicate the flight booking process.
The rule, which was finalized after an 18-month process, is scheduled to take effect on July 1. The Transportation Department estimates that it could save consumers over $500 million annually. Last year, airlines collected nearly $5.5 billion in baggage fees, according to the Bureau of Transportation Statistics.
The Transportation Department defended the regulation, emphasizing that it aims to protect consumers from hidden fees and provide transparency in pricing. Consumer advocate John Breyault noted the benefits of the rule, saying it allows for a more straightforward comparison of flight costs for travelers.
The Biden administration emphasized that the new rule would prevent deceptive pricing tactics that might mislead consumers. Airlines have invested in improving their websites and apps to ensure that fees are disclosed before purchase, but the administration sees the regulation as necessary for consumer protection.
Airlines for America argued that carriers are already motivated to provide good service without government mandates. They expressed concerns that the rule could lead to cluttered and confusing search results for consumers, ultimately hindering the booking process.
The administration’s efforts to combat “junk fees” extend beyond airlines, targeting industries such as credit cards, resorts, cable companies, and live event ticket sellers. This push for transparency in pricing reflects a broader trend towards consumer protection in various sectors.