Appeals Court Temporarily Blocks Department of Transportation’s Airline Hidden ‘Junk Fees’ Rule

A Delta Air Lines aircraft prepares to land at Reagan National Airport in Arlington, Va., on Jan. 24, 2022. Joshua Roberts/Reuters

The U.S. Department of Transportation’s (DOT) new rule aimed at forcing airlines to reveal “junk fees” when advertising prices for flights has been temporarily blocked by an appeals court.

In a July 29 ruling, the three-judge panel from the 5th U.S. Circuit Court of Appeals in New Orleans found the rule “likely exceeds DOT’s authority” and will “irreparably harm airlines.”

The Transportation Department first announced the rule in April 2024, mandating that airlines and ticket agents tell consumers up front if any fees are to be paid for a first or second checked bag, or a carry-on bag.

They must also disclose if customers need to pay extra to cancel or change their reservations, and let customers know that seats are guaranteed and that they are not required to pay extra to secure one.

Additionally, the rules mandate that airlines and ticket agents may not advertise a promotional discount off a low base fare that does not include all of the extra carrier-imposed fees.

At the time, DOT said the regulations could save customers more than $500 million a year in hidden and “unnecessary” airline fees.

Airlines Sue

Multiple airlines initiated legal proceedings against the DOT.

The appeals court said the airlines had given “ample evidence detailing the irreparable harm they will suffer absent a stay. For instance, they will have to expend significant resources reengineering their websites to comply with the rule.”

The judges also found the DOT rule “goes far beyond adjudication,” writing in its ruling that the regulation “mandates, often in great detail, a host of disclosure practices.”

The court granted a request by a coalition of major airlines to temporarily block the rule from taking effect while their lawsuit challenging the regulation plays out.

The court also said it will expedite the petition for review.

The Transportation Department said it planned to implement the rules within six months to two years.

However, American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines, and Alaska Airlines filed a lawsuit against the Transportation Department in May to block the rule.

Airlines for America, a lobbying group based in Washington, D.C., joined the legal challenge.

In their lawsuit, the airlines argued the department was going beyond its authority in issuing the new rule and that the regulation was an “attempt to regulate private business operations in a thriving marketplace.”

The groups further claimed the rule is a “bad solution in search of a problem” and “arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.”

Additionally, the group argued that companies already disclose all fees related to air travel up front.

Rising Baggage Fees

DOT’s Bureau of Transportation Statistics data shows airline revenue from baggage fees increased by more than 30 percent between 2018 and 2022.

The Transportation Department has argued in court filings that the rule is lawful, stating that Transportation Secretary Pete Buttigieg is authorized to take action he considers necessary to carry out his duties.

This includes “conducting investigations, prescribing regulations, standards, and procedures, and issuing orders,” according to the department.

In the meantime, the DOT has vowed to vigorously defend the rule and protect US consumers from hidden junk fees while holding airlines accountable.

The Epoch Times has contacted a spokesperson for the Department of Transportation for further comment.