Several airlines, including American Airlines, JetBlue, United Airlines and Delta Air Lines, have sued the Department of Transportation for its new rule “requiring carriers to be transparent over so-called ‘junk fees,’” per Travel + Leisure.
The rule requires airlines to disclose all fees to passengers upfront as well as provide immediate refunds when owed. The DOT shared with Travel + Leisure that travelers will be entitled to a refund if significant changes are made to their flight, if baggage is significantly delayed, or if ancillary services — such as WiFi and seat selection — are not provided.
While the rule is intended to prevent unnecessary fees, several U.S. airlines argue that it will confuse passengers.
What is the lawsuit?
According to USA Today, the group of airlines released a statement on their disagreement with the DOT’s new regulation, saying that its “attempt to regulate private business operations in a thriving marketplace is beyond its authority.”
The lobbying group — Airlines for America — joined the various airlines in their lawsuit. Southwest remained exempt, according to The Associated Press. “Overall, we support every airline’s right to price its products but believe fees should be clearly and consistently disclosed, so consumers can make informed purchasing decisions,” said Southwest.
Other airlines are challenging the regulation. “Airlines go to great lengths to make their customers knowledgeable about these fees,” said Airlines for America, per The Associated Press. “The ancillary fee rule by the Department of Transportation will greatly confuse consumers who will be inundated with information that will only serve to complicate the buying process.”
What does this mean for travelers?
According to the Department of Transportation, the new rule will save travelers a half-billion dollars annually.
Prior to the regulation change, individual airlines were responsible for their own standards and fee refunds. The regulation — according to DOT— will lessen the confusion of passengers by providing them with a structured, universal standard of refunds.
Pete Buttigieg, the U.S. Transportation Secretary, said, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
The refunds are designed to be “prompt” and “automatic,” according to DOT. They will also be provided in the “original form of payment,” meaning that airlines can no longer substitute “vouchers, travel credits, or other forms of compensation” unless a passenger accepts the alternative form of payment. Additionally, all refunds must be paid in their full amount, including “government-imposed taxes” and “airline-imposed fees.”
DOT shared that during the COVID-19 pandemic, refund complaints peaked at 87% of all “air travel service” complaints. The new rule is meant to decrease the number of refund-related issues.