Airlines sue DOT over ‘junk fee’ disclosure

Wednesday, 14 May, 2024 0

A number of major US airlines are taking legal action against US Transportation Department to block price transparency.

They are suing over the new rule requiring airlines to disclose all airline fees upfront.

Trade group Airlines for America, together with American Airlines, Delta, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines, filed the suit against the DOT.

They claim the government doesn’t have the authority to ‘regulate private business operations in a thriving marketplace.’

It is ‘arbitrary, capricious, an abuse of discretion and contrary to law’ the suit says.

The DOT says it will ‘vigorously defend our rule protecting people from hidden junk fees.’

The Department says consumers are overpaying by about $543 million in fees every year.

The DOT rule states that fees ‘must be individually disclosed the first time that fare and schedule information is provided on the airline’s online platform.’

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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