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A new air travel fee transparency rule passed by the U.S. Department of Transportation earlier this month has sparked outrage among major U.S. airlines — and now the companies are suing the government to block the new order.
The lawsuit was filed Monday in the 5th U.S. Circuit Court of Appeals in New Orleans on behalf of the trade group Airlines for America and certain airlines, including American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines.
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The airlines call the new rule an “abuse of discretion” and claim the agency is overstepping its authority by “going beyond its authority” and attempting to “regulate private business operations in a thriving market.”
The law, announced April 24, requires airlines to disclose and explain all “surprise fees” in advance “clearly, conspicuously and accurately” to passengers before they purchase their tickets.
Southwest Airlines did not join the lawsuit — the airline has never charged checked baggage fees or charged fees for canceling or changing a flight.
“On the whole, we support each airline's right to set the price of its products, but believe that fees should be clearly and consistently disclosed so consumers can make informed purchasing decisions,” Southwest said, according to the Associated Press.
The USDOT claims the new law will save travelers over $500 million per year in fees.
“Airlines should compete to secure passenger business – not to see who can charge the most surprise fees,” Transportation Secretary Pete Buttigieg said at a news conference at the time.
Related: Delta Airlines is increasing checked baggage fees this week
“We will vigorously defend our rule that protects people from hidden junk fees and ensures travelers can see the full price of a flight before purchasing a ticket. Many air travelers will be disappointed to learn that the airline lobby is suing to reasonably stop these protective measures,” the department said Monday.
It is estimated that airlines will have earned $33 billion in 2023 from checked baggage fees alone.
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