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United States court blocks Biden administration's airline company fee disclosure rule

A U.S. appeals court on Tuesday obstructed the Biden administration's 2024 guideline requiring in advance disclosure of airline company service charge, saying the Transport Department (USDOT) had not complied with procedural guidelines.

The court ruling stated the department had authority to write cost disclosure rules that particularly deal with unreasonable or misleading practices being performed by airlines. Nevertheless, the court also stated the department must have permitted airline companies an opportunity to comment on a research study utilized by USDOT that looked at the effect of the charge disclosure guidelines.

The court sent out the guideline back to USDOT to offer it a. chance to resolve the procedural error. The department, which. has actually been under control of the Trump administration considering that Jan. 20, did not right away talk about whether it prepares to proceed.

Regulations released by USDOT in April needed airlines and. ticket representatives to disclose service fees along with the airfare, in. a transfer to help consumers prevent unwanted or unforeseen fees, however. they were put on hold pending a legal challenge.

Airlines including American Airlines, Delta Air. Lines, United Airlines, JetBlue and. Alaska Airlines, signed up with by trade group Airlines for. America and the International Air Transportation Association, took legal action against in. May to overturn the guidelines.

Airlines for America said it was studying the ruling and. did not comment.

The Biden rules had set an October 2024 due date for. airlines to divulge cost data to third-party ticket representatives, and. by themselves sites by April 2025.

The industry formerly said the guideline would need. airlines to spend millions to re-engineer their websites.

In April, USDOT said customers were paying too much $543. million in fees each year, creating extra income for. airlines from travelers shocked by having to pay a higher. fee at the airport to inspect a bag.

Significant airlines charge such greater charges if tourists do. not pay ahead of time or wait till flight time. Several U.S. airline companies boosted fees last year for inspected luggage.

The guideline would end bait-and-switch techniques some. airlines utilize to disguise the true cost of reduced flights,. included USDOT.

U.S. airlines collected $7.1 billion in baggage costs in. 2023, up from $6.8 billion in 2022.

(source: Reuters)