A federal appeals court has agreed to rehear a case pitting a Biden-era consumer protection rule against most of the U.S. airline industry.
The rule, issued in 2024 but so far blocked from taking effect, would require airlines to fully disclose their fees to customers when they book a flight. Airlines and industry trade groups sued to stop the measure, and in January, the 5th U.S. Circuit Court of Appeals in New Orleans ruled that while the U.S. Department of Transportation had the authority to make such a rule, it had violated procedure by denying the airlines a chance to comment on a study that assessed the proposal’s impact on fees.
The appeals court said Thursday that its 17 active judges will sit “en banc” and review that decision. In “en banc” proceedings, all judges of a particular court hear a case.
The development was first reported by Reuters.
The current Department of Transportation, now under different leadership, has not sought to rework and reimplement the price transparency rule, even though the January ruling gave it the ability to do so. In general, the Trump administration has shown much less interest in passing or upholding consumer protection rules for the airline industry, and has already dropped enforcement of some.
United, American Airlines, Delta, Alaska Airlines, JetBlue, and three trade groups, including Airlines for America, have argued that the rule exceeds the FAA’s statutory authority. Airlines for America, which represents all the U.S. legacy carriers, has said the FAA should limit its rulemaking to issues directly related to airline operations and safety.
Headed Back to Court
The Transportation Department issued several rules focusing on consumer protection in commercial air travel in 2023 and 2024, including a measure that required airlines to compensate passengers for delays of over three hours. Another notable rule from that period required airlines to assume responsibility for damage to passenger mobility equipment, such as wheelchairs.
The department also announced a joint investigation with the U.S. Justice Department looking into the “state of competition in air travel.” The two agencies said they would gather information on industry consolidation, airport access rules, and “anticompetitive conduct,” among other topics.
Some of these directives were blocked by the courts, and the Trump administration has declined to defend them. In September, the Department of Transportation said it would withdraw the delay compensation rule, and earlier this week it decided not to enforce protections for mobility devices.
There has been no word on the status of the investigation into airline competition. Airlines for America has argued it should be stopped.
