AIRLINE 'JUNK FEES' CAN NO LONGER FLY UNDER THE RADAR, NEW RULE SAYS

Key Takeaways

• The U.S. Department of Transportation finalized a rule Wednesday morning that requires airlines and travel agencies to disclose upfront fees for checked bags and canceling or changing a reservation.
• The department said this rule will save flyers more than $500 million each year by uncovering unexpected fees.
• It's the latest round in President Joe Biden's fight against so-called "junk fees," which are unexpected by consumers and considered excessive in comparison with costs.

Flyers will have more transparency into how much their ticket will cost as they shop under a new rule finalized by the federal government Wednesday.

The Department of Transportation released a new rule that requires airlines and travel agencies to disclose upfront any fees for extra services critical to travel such as a first or second checked bag, canceling a flight, or changing a reservation. Through this rule, customers will save more than $500 million per year by avoiding surprise fees on tickets that initially look cheaper than others, the agency said.

"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 in a press release. 

Current regulations require the full fare including any mandatory charges to be disclosed upfront. The department is still determining the full scope of services and will take public feedback into account on the matter, it said.

The new rule will curtail what the department said is a growing source of revenue for airlines, increasing 30% between 2018 and 2022.

The rule is the latest in President Joe Biden's crusade against so-called "junk fees," which are unexpected by customers and considered excessive compared to costs. It was announced in conjunction with a rule that would require airlines to refund travelers automatically and in cash when their flight is delayed or their bags are lost.

The disclosure rule will go into effect in phases, ranging from six months to two years.

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2024-04-24T10:02:42Z dg43tfdfdgfd