Airlines Vs Joe Biden: Companies Sue US Government Over 'Fee Disclosure'

Airlines Vs Joe Biden: Companies Sue US Government Over 'Fee Disclosure'

According to reports, all major airlines, including, American Airlines , Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines, filed a suit against the government.

Juviraj AnchilUpdated: Friday, May 17, 2024, 11:27 AM IST
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US President Joe Biden | X

The United States is one of the largest markets for the global aviation industry, and the fact that the country houses three of the biggest airlines (American Airlines, Delta Airlines, and United Airlines) in the world is a testament to that very fact.

Airlines Sue US Government

In a recent development, according to a report from Reuters, major American airlines have decided to take on the Joe Biden-led US government over a contentious new rule. According to the rule, airlines will have to disclose airline fees upfront. This new rule has not gone down well with the country's carriers.

According to reports, all major airlines, including, American Airlines , Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines, filed a suit against the government.

Airline charges are often mired in great amount of enigma often confusing consumers, leading umbrage among them.

The new rules would see the airlines forced to disclose service fees, alongside the airfare. This as obfuscation of pricing often leads to flyers paying more than what they was initially shown.

According to a statement obtained by Reuters, the government department responsible for the rule said, "will vigorously defend our rule protecting people from hidden junk fees and ensuring travellers can see the full price of a flight before they purchase a ticket." 

US-based Airlines are some of the biggest in the world, with regards to the number of passengers carried, American Airlines and Delta Airlines led the pack with 200 and 170 million passengers, respectively.

US-based Airlines are some of the biggest in the world, with regards to the number of passengers carried, American Airlines and Delta Airlines led the pack with 200 and 170 million passengers, respectively. | Representative image

The Might Of US Airlines

This is not the government's first attempt to reign in on airlines, as in April, the government directed Southwest Airlines to alert passengers must provide compensation for delays and cancellations within their control.

US-based Airlines are some of the biggest in the world, with regards to the number of passengers carried, American Airlines and Delta Airlines led the pack with 200 and 170 million passengers, respectively. 

In terms of revenue, these airlines top the charts globally, as Delta Airlines, American Airlines, and United Airlines, have a revenue in excess of over USD 50 billion on average.

Interestingly, all the three major airlines have seen their shares slump. Delta shrank 1.41 per cent on May 17, American Airlines slumped a whole 1 per cent. In addition, United Airlines slumped 0.33 per cent at the end of the day's trade.

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