Major U.S. air carriers, including American Airlines, United Airlines, Delta Air Lines, JetBlue, and Alaska Airlines, along with trade groups, challenged a U.S. appeals court ruling on March 14, 2025. The ruling affirmed the Transportation Department's authority to write airline fee disclosure rules.
The airlines asked the full appeals court to reconsider the ruling, arguing that the new rule would 'upend the way airlines interact with their customers, at great cost, and with no demonstrated benefit.' They contend that the DOT did not comply with procedural rules by failing to allow comment on a study reviewing the impact of the rules.
The Biden administration's 2024 rule requires upfront disclosure of service fees alongside airfares to prevent unexpected charges. U.S. airlines collected $7.1 billion in baggage fees in 2023, and this legal challenge could significantly impact future revenue streams and consumer transparency in the industry.
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