Airlines Win: Court Overturns Fee Disclosure Mandate

The 5th U.S. Circuit Court of Appeals has vacated a rule by the U.S. Transportation Department requiring airlines to disclose all fees upfront during flight bookings. Major airlines challenged the rule, introduced in 2024, arguing it was not justified by federal law and would disrupt operations significantly.

The U.S. Court of Appeals for the 5th Circuit has decided to vacate last year's ruling that empowered the U.S. Transportation Department to mandate transparent disclosure of airline fees during ticket bookings. The decision, rendered en banc, reverses a prior verdict that blocked enforcement of this consumer-friendly regulation.

Major airlines had vigorously opposed the 2024 directive from the Biden administration, which sought to make ancillary fees like baggage charges visible to passengers in the booking process. Airlines argued that the regulation exceeded USDOT's authority and posed significant operational challenges.

While USDOT initially justified the rule by citing significant consumer overcharges, the court found procedural issues in its formulation. The controversy echoes other moves during the Trump administration that scaled back regulations on airline customer protections, including compensation for carrier-caused delays.

(With inputs from agencies.)