In a recent development, a federal appeals court in the United States announced on Thursday that it will reconsider a recent ruling regarding the Department of Transportation’s authority to require airlines to disclose all fees, including various extra charges, when passengers book flights.
The Fifth Circuit Court of Appeals in New Orleans stated in a brief order on Thursday that its 17 current judges will hold an “en banc” hearing to review a decision made by a panel of three judges on January 28.
Several major airlines and industry organizations in the United States are challenging several new regulations issued by the Department of Transportation in April 2024. One of these regulations requires airlines and ticket agents to disclose various additional fees, known as “junk fees,” when publishing ticket prices. The aim is to help consumers avoid unnecessary or unexpected charges.
Following the introduction of these regulations, airlines such as American Airlines, Delta Air Lines, United Airlines, JetBlue, Alaska Airlines, and industry group Airlines for America (A4A) jointly filed a lawsuit to block these regulations. They argue that the rules exceed the Department of Transportation’s authority and would cause irreparable harm to airlines.
In July 2024, a panel of three judges from the Fifth Circuit Court of Appeals temporarily halted the implementation of the regulations by the Department of Transportation.
However, in a decision rendered in January this year, the court stated that the Department of Transportation has the authority to mandate airlines to disclose fees to address airlines’ “unfair or deceptive practices.”
Despite this ruling, the court suggested that the Department of Transportation should allow airlines to comment on a study used to evaluate the potential impact of the fee disclosure rules they formulated.
The case has been remanded back to the Department of Transportation for further action by the Fifth Circuit Court of Appeals without a decision to overturn the regulations.
The airlines subsequently sought an en banc hearing, arguing that implementing the regulations would “upend the way airlines interact with customers, incur significant costs, and offer no demonstrated benefits.”
The Department of Transportation opposed a rehearing, stating that the court’s decision to remand the rule back to them for action was appropriate.
The Fifth Circuit Court of Appeals is considered one of the most conservative federal appeals courts in the United States. The court’s recent ruling did not specify a timeline for oral arguments from both sides in this case.
(Adapted from Reuters reporting)