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The
rules, which were nearly three years in the works, will require
airlines and ticket agents to tell consumers upfront about
baggage or change and cancellation fees. The department said
consumers are expected to save $543 million annually in excess
airline fees.
The new rules require airlines and ticket agents to disclose
extra service fees alongside the full fare, the first time fare
and schedule information is displayed online.
The government will also require airlines to refund baggage fees
if bags are not delivered within 12 hours of domestic flights
arriving or 15 to 30 hours of their international flight
arrivals, as well as for services that do not work or are not
provided. Airlines must promptly and automatically issue refunds
if flights are canceled.
"Airlines should compete with one another to secure passengers’
business—not to see who can charge the most in surprise fees,"
said U.S. Transportation Secretary Pete Buttigieg.
Airlines for America, a trade group representing major carriers,
said airlines "offer transparency and vast choice to consumers
from first search to touchdown. U.S. airlines are committed to
providing the highest quality of service, which includes clarity
regarding prices, fees and ticket terms."
In May, President Joe Biden said USDOT was writing new rules to
require airlines to compensate passengers with cash for
significant flight delays or cancellations when the carriers are
responsible. But almost a year later, USDOT has still not issued
a formal proposal.
Airlines will be required to explain fee policies before ticket
purchases and share fee pricing and policies with other
companies that display fares.
Under the new rules, airlines will be required to tell consumers
seats are guaranteed and passengers need not pay seat selection
fees. Carriers are prohibited from advertising promotional
discounts that do not include mandatory carrier-imposed fees.
Last month, a U.S. Senate Committee said it was stepping up its
investigation into billions of dollars in yearly airline fees,
noting between 2018 and 2022, total revenue across major U.S.
airlines from baggage fees increased from $4.9 billion to $6.8
billion.
(Reporting by David Shepardson; editing by Miral Fahmy)
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