U.S. Appeals Court Blocks DOT's Disclosure Rule on Airline Fees

A U.S. appeals court temporarily blocked the DOT's rule mandating upfront disclosure of airline fees, pending a full review. The DOT introduced the rule in April, aiming to help consumers by requiring fee transparency. The court found the rule potentially beyond the DOT's authority and harmful to airlines.

A U.S. appeals court on Monday blocked the U.S. Transportation Department's new rule requiring upfront disclosure of airline fees pending a full review of the regulation.

The DOT issued final rules in April requiring airlines and ticket agents to disclose service fees alongside the airfare, saying it would help consumers avoid unneeded or unexpected fees.

The 5th U.S. Circuit Court of Appeals granted the industry's request to block the rules, saying it 'likely exceeds DOT's authority and will irreparably harm airlines' pending a full review by the court.

(With inputs from agencies.)