Rule will save consumers over half a billion dollars each year in expensive, unexpected baggage, change, and cancellation fees by requiring airlines to make these costs clear upfront
WASHINGTON – The Biden-Harris Administration today announced a final rule to protect airline passengers from surprise junk fees when purchasing a ticket. The rule requires airlines and ticket agents to tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag, and for canceling or changing a reservation. This will help consumers avoid unneeded or unexpected fees that can increase quickly and add significant cost to what may, at first, look like a less expensive ticket. In total, thanks to this final rule, consumers are expected to save over $500 million annually that they are currently overpaying in hidden airline fees.
“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. “DOT’s new rule will save passengers over half a billion dollars a year in unnecessary or unexpected fees by holding airlines accountable for being transparent with their customers.”
Extra fees have become a growing source of revenue for airlines in recent years. DOT’s Bureau of Transportation Statistics data shows that airline revenue from baggage fees increased by more than 30 percent between 2018 and 2022, while their operating revenue grew at less than half that pace in the same period. As part of the rulemaking process, DOT determined that extra fees have become more complex over time and continue to confuse passengers, requiring additional action by the Department.
The final rule will create a more competitive airline market by ensuring that consumers have the information they need to better understand the true costs of air travel. DOT already requires airlines and ticket agents to disclose the full fare, which is the entire price to be paid by a customer for an airline ticket including all mandatory carrier-imposed and government charges. For the first time, the new rule requires airlines and ticket agents to disclose extra service fees critical to consumers’ purchase decisions alongside the full fare. This ensures that consumers can avoid surprise junk fees when they purchase tickets from airlines or ticket agents — whether traditional brick-and-mortar agencies or online travel agencies.
These critical extra services include checking a first or second bag, carrying on a bag, cancelling or changing a reservation, and any other services determined to be critical by the Secretary in the future after public feedback. However, the Department is not mandating disclosure of family seating fees in the final rule as DOT is planning to propose a separate rule that bans airlines from charging these junk fees.
Under the final rule, airlines and ticket agents are required to:
- Disclose critical extra fees upfront: The rule requires airlines and ticket agents to display critical extra service fees upfront clearly, conspicuously, and accurately. Each critical extra fee must be individually disclosed the first time that fare and schedule information is provided on the airline’s online platform — and cannot be displayed through a hyperlink. For consumers shopping for flights offline, airlines and ticket agencies must disclose these fees when they provide a fare quote.
- Explain critical extra fee policies prior to purchase: To help consumers figure out whether they want to purchase a critical extra service, the rule requires airlines and ticket agents to explain the airline’s baggage, change, and cancellation policies before ticket purchase. For each type of baggage, airlines and ticket agents must spell out the weight and dimension limitations that they impose. Airlines and ticket agents must also describe any prohibitions or restrictions on changing or cancelling a flight, along with policies related to differences in fare when switching to a more or less expensive flight.