US airlines have gained a reprieve just ahead of a new rule that would give customers more price transparency up front.
An appeals court has temporarily blocked the Department of Transportation rule that would compel airlines to show all costs including appropriate extra fees up front.
The court allowed for a temporary injunction.
The court said the rule ‘likely exceeds the Department of Transportation’s authority.’
US airlines through trade group Airlines for America filed to block the rule being implemented.
The airlines, comprising Delta, American Airlines, United, JetBlue and others had sued the Biden administration, claiming price transparency would ‘confuse’ customers.
Airlines for America claimed implementing the rule into booking engines would cost airlines up to $10 million.
It is part of a government bid to eliminate junk fees from many consumer sectors.
The rule requires all costs including add-on ancillary fees displayed up front.
“DOT will continue defending our rule that protects consumers from surprise fees that can unexpectedly jack up the price of air travel,” the DOT said.
The government’s argument is that customers cannot properly compare airline prices if the true cost is not displayed up front.
