Biden administration rule forcing airlines to clearly disclose fees can’t go into effect, court rules

A three-judge panel on the 5th U.S. Circuit Court of Appeals in New Orleans said Monday the rule “likely exceeds” the agency’s authority “and will irreparably harm airlines.”

The judges found the rule to be too detailed in its restrictions. They granted a request by airlines to temporarily block the rule while a lawsuit filed by the carriers plays out.

The Biden administration published the rule, alongside another dealing with airline refunds, in April as part of a campaign against what it calls junk fees. The Transportation Department said the rule would save consumers more than $500 million a year.

Consumer advocates were dismayed with the court’s ruling. Caroline Ciccone, president of the group Accountable.US, said the new rule “is beyond reasonable for an industry notorious for nickel and diming families to help fuel executive compensation and bonuses.”

Ciccone said Tuesday that the judges were “all too happy to give the airlines what they wanted at the expense of everyday consumers.”

The industry trade group Airlines for America, which joined the lawsuit against the rule, declined to comment.

Under the rule, airlines and ticket agents would be required to disclose fees for checked and carry-on bags and canceling or changing a reservation. Airline websites would have to show the fees the first time customers can see a price and schedule.

Six carriers including American, Delta and United, along with Airlines for America, sued in May to block the rule. The trade group said then that the rule would confuse consumers by giving them too much information when buying tickets.

The panel of judges granted the airlines’ request to expedite their lawsuit and said the matter would be moved up to the next available session for oral arguments.