Appeals Court Halts DOT's Rule on Airline Fee Transparency

On Monday, a U.S. appeals court temporarily blocked the U.S. Transportation Department's (DOT) new rule requiring upfront disclosure of airline fees, pending a full review of the regulation. The DOT issued these final rules in April, mandating that airlines and ticket agents disclose service fees alongside airfare to help consumers avoid unexpected fees.

The U.S. Fifth Circuit Court of Appeals permitted the industry's request to block the rules, stating that the regulation " likely exceeds DOT's authority and will irreparably harm airlines." The case is scheduled for a hearing at the next available session for oral arguments.

American Airlines, Delta Air Lines, United Airlines, JetBlue, and Alaska Airlines, along with Airlines for America (A4A) and the International Air Transport Association, sued in May to block the rules. The airline group declined to comment on Monday's ruling.

A DOT spokesperson affirmed the department's commitment to defending the rule, stating, "Nothing in the court's decision prevents airlines from voluntarily complying with this common sense rule that simply requires them to keep their customers fully informed." The DOT added that the rule aims to end "bait-and-switch tactics some airlines use to disguise the true cost of discounted flights."