Appeals court blocks Biden airline 'junk fees' rule

A federal appeals court has temporarily blocked the Biden administration’s new rule that requires airline companies to disclose extra fees on purchases.

The three-judge panel from the 5th U.S. Circuit Court of Appeals said in a Monday order that the ruling “likely exceeds [the Department of Transportation's] authority and will irreparably harm airlines.” The panel granted the request from a coalition of airlines to temporarily block the rule, noting that it will also expedite the petition for review.

A coalition of major airlines sued the Biden administration in May over the Department of Transportation's (DOT) crackdown on junk fees in air travel. These extra fees can include charges for checked bags, carry-on bags and changing or canceling reservations.

Trade group Airlines for America filed the lawsuit alongside Delta Air Lines, American Airlines, United Airlines, JetBlue Airways Corp., Hawaiian Airlines and Alaska Airlines. The group argued that the new rule would “confuse” customers and “complicate” the purchasing process.

Transportation Secretary Pete Buttigieg heavily criticized the lawsuit when it was filed, saying that he was “speechless."

“We just issued a rule requiring airlines to inform you, before you buy a ticket, of fees they will charge you,” Buttigieg said in a post on the social platform X at the time. “Now, the airline lobby is suing us, saying that if you have the right to that information it will ‘confuse’ you. For once, I am speechless.”

The department doubled down on its rule in a statement to The Hill on Tuesday, emphasizing that airlines can still “voluntarily” comply with the rule even with the court's order.

“DOT will continue defending our rule that protects consumers from surprise fees that can unexpectedly jack up the price of air travel," the department said. "Nothing in the Court’s decision prevents airlines from voluntarily complying with this common sense rule that simply requires them to keep their customers fully informed when buying a plane ticket."

The Hill has reached out to Airlines for America for comment.