Court blocks airline service fee disclosure rule

An appeals court blocked the Biden administration’s rule that required airlines to disclose upfront their service fees.

The court said Tuesday that the Department of Transportation (DOT) failed to comply with procedural rules, including providing the airline companies a chance to comment on the study used to create the rule.

A group of major airlines sued the Biden administration last year over the rule that required them to disclose extra costs, also called junk fees, on customers’ purchases. They argued that the rule would confuse consumers, and the companies already go to great lengths to make sure customers are knowledgeable about their fees.

Under the Biden-era rule — which was temporarily blocked over the summer but ultimately allowed to stand — airlines are required to disclose extra fees before a customer makes their final purchase. That could include extra costs for checked luggage, carry-on bags and changing or canceling a reservation.

Tuesday's ruling said the DOT had the authority to write a fee disclosure rule that specifically addresses unfair or deceptive practices, but added that it should have allowed for a comment process where the impacted companies could have weighed in.

It will now head back to the department to address the procedural error, but it’s not known what will happen under the new Trump administration.

The suit was filed in the 5th Circuit Court of Appeals against the department, which finalized the fee disclosure rule last year after the Biden administration attempted to crackdown on junk fees.

The Hill has reached out to the DOT for comment.

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