US airlines challenge junk fee disclosure rule in court

U.S. airlines are challenging a recent court ruling that allows the Department of Transportation (DOT) to enforce new rules on disclosing "junk fees." These fees include charges for checked bags and reservation changes. The rule, introduced in April 2024, aims to provide clearer information to passengers. The 5th Circuit Court of Appeals initially paused the rule's enforcement, citing procedural issues, but acknowledged the DOT's authority to regulate airline practices. Major airlines, including American and United, argue that the rule would complicate customer interactions and increase costs. A recent Senate report highlighted that U.S. airlines earned $12.4 billion from seat fees between 2018 and 2023. Southwest Airlines announced it will start charging for checked bags on flights booked after May 28, 2025, while maintaining free checked bags for certain fare classes.