A U.S. appeals court has clipped the wings of a 2024 regulation that aimed to make airline service fees more transparent, citing procedural missteps by the Transportation Department (USDOT). The court’s decision forces the rule, championed by the Biden administration, back to the drawing board.
The proposed regulation sought to require airlines and ticket agents to display service fees—like baggage and seat selection costs—alongside airfares, sparing travelers from unexpected charges at the airport. But the court found that USDOT failed to give airlines a chance to weigh in on a key study supporting the rule, undermining the process.
Airlines, backed by trade groups, celebrated the verdict. They argued the rule would overload customers with excessive information and require costly website overhauls. The industry claims these changes could confuse rather than assist travelers.
USDOT, however, has defended the regulation, asserting that hidden fees are a cash cow for airlines. In 2023, U.S. carriers raked in $7.1 billion in baggage fees alone, up from $6.8 billion the previous year. The department estimated consumers were overpaying $543 million annually due to surprise charges at the airport.
The legal setback halts efforts to address so-called “bait-and-switch” tactics, where low fares are advertised without full disclosure of fees. It also pauses an October 2024 deadline for airlines to share fee data with third-party booking sites and an April 2025 requirement to publish fees on their own platforms.
The broader debate over airline pricing transparency continues, with consumer advocates and lawmakers pushing for stricter rules. Meanwhile, airlines remain firmly opposed, defending their pricing strategies as necessary for competition.
As USDOT weighs its next move, travelers are left navigating an often opaque booking process, where the true cost of a flight remains hidden behind a wall of fees.
