The U.S. Court of Appeals on Monday blocked a new rule from the Department of Transportation that required airlines to disclose fees in advance, pending a full review of the regulation.
In April, the Department of Transportation issued a final rule mandating airlines and ticket agents to disclose service fees alongside ticket prices, stating this would help consumers avoid unnecessary or unexpected charges.
The court's decision is a significant setback for the Biden administration, which has taken a tough stance on airline fees over the past three years.
A three-judge panel of the U.S. Fifth Circuit Court of Appeals agreed to the industry's request to temporarily block these rules, stating that the regulations “may exceed the Department of Transportation’s authority and would cause irreparable harm to airlines.” The court noted that the case will be scheduled for a hearing at the next available oral argument session.
Major airlines, including American Airlines, Delta Airlines, and United Airlines, along with the trade group “Airlines for America,” filed a lawsuit in May seeking to block the regulations. The rules required airlines to disclose fee data to third-party ticket agents by October 30 and on their own websites by April 30, 2025.
The airline industry argued that the rule would require them to “spend millions of dollars redesigning their websites, diverting resources from other projects.”
Airline groups and the Department of Transportation did not immediately comment on Monday.
