The 5th U.S. Circuit Court of Appeals has put on hold new U.S. Department of Transportation (DOT) rules designed to protect consumers from so-called “junk fees” tacked onto the end of airline ticket transactions and other purchases.
The rules, announced in April 2024, would require airlines and ticket agents to tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag and canceling or changing a reservation. “This will help consumers avoid unneeded or unexpected fees that can increase quickly and add significant cost to what may, at first, look like a less expensive ticket,” according to DOT.
“In total, thanks to this final rule, consumers are expected to save over $500 million annually that they are currently overpaying in hidden airline fees,” according to DOT.
Exposing Junk Fees Will “Irreparably Harm the Airlines”
However, a three-judge panel on the New Orleans-based appeals court ruled that the regulations “likely exceeds” the agency’s authority “and will irreparably harm airlines,” according to a July 30 report from the Associated Press.
The court granted airlines, which had challenged the rule, a temporary stay on enforcement of the regulations while their appeal plays out.
The trade group Airlines for America, as well as American Airlines, Delta Air Lines and United Airlines, is seeking to block the new regulations, claiming that carriers already adequately disclose their fees and that the new rules would confuse consumers.
Caroline Ciccone, president of the consumer advocacy group Accountable.US, said the DOT rule “is beyond reasonable for an industry notorious for nickel and diming families to help fuel executive compensation and bonuses. But the big airlines consider more transparency about what they actually charge Americans as an affront to profits, so they went judge-shopping in the right-wing Fifth Circuit for a bailout. Predictably, the favorite jurisdiction for greedy corporations was all too happy to give the airlines what they wanted at the expense of everyday consumers.”
DOT officials said they would appeal the ruling.
