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Federal Court Halts New Airline Fee Disclosure Rule

The Biden administration's regulation aimed at increasing transparency faces legal challenges from major airlines.

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Passengers wait before boarding as an Airbus A321 passenger aircraft of Delta Airlines moves along the tarmac at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia on June 21, 2024. (Photo by Charly TRIBALLEAU / AFP)

Overview

  • A U.S. appeals court temporarily blocked the Department of Transportation's rule requiring upfront disclosure of airline fees.
  • The rule mandated airlines to reveal fees for services like checked bags and reservation changes alongside ticket prices.
  • The court ruled that the regulation likely exceeds the DOT's authority and could irreparably harm airlines.
  • Airlines argued that the rule would confuse consumers and require costly website overhauls.
  • The case will proceed to further hearings, with the DOT defending the rule as a consumer protection measure.