A group of major airlines has filed a lawsuit against the U.S. government over a new rule that requires them to be more transparent about the fares they charge passengers. The airlines, including American Airlines, Delta, and United, claim that the rule will only confuse consumers by inundating them with too much information during the ticket purchasing process.
The Transportation Department has warned that it will vigorously defend the rule, which aims to combat “unnecessary hidden fees” that some airlines impose on travelers. The new rule, announced on April 24, will require airlines and travel agents to disclose fees for baggage, reservation changes, and cancellations upfront. Fares must be clearly displayed on the first web page where ticket prices appear.
The airlines argue that they already make efforts to inform customers about additional fees and that the government has not demonstrated a need for this new rule. The Department of Transportation estimates that the rule will save consumers over $500 million annually by preventing hidden fees.
Southwest Airlines, the only major carrier not involved in the lawsuit, supports the transparency rule and believes that fares should be disclosed clearly and consistently to help consumers make informed decisions. The case has been filed before the Fifth U.S. Circuit Court of Appeals in New Orleans, and the outcome will determine whether the new rule will be implemented.