Feds could scrap rules requiring airlines to disclose airfares in full
Shopping for plane tickets and comparing airfares across carriers could become more complicated if a Department of Transportation proposal to change current regulations moves forward, according to aviation industry experts.
An existing federal rule requires airlines to show consumers the total ticket price, including the fare plus taxes and fees, more prominently than individual ticket components are advertised. That helps consumers evaluate the all-in cost of a ticket upfront and avoid being surprised by ancillary costs when they click “buy.”
But a recent Transportation Department proposal could allow airlines to present incomplete base fares to consumers, as long as they also show the ticket’s total price. The change would allow carriers to display the individual items that go into airfare, such as taxes and fees, without visually distinguishing them from a ticket’s total price. Previously, such items were required to be written and displayed in a smaller font size.
The agency is also weighing whether to eliminate a rule that prohibits advertising airfare components more prominently than a ticket’s all-in cost.
The Trump administration has argued that existing regulations are too strict, while the DOT states that the rule changes would give airlines more flexibility in advertising their products and services.
Confusing for customers?
Airline analysts worry that rolling back rules designed to make airline pricing more transparent could harm consumers by making it harder for them to understand a trip’s true cost.
“This has the potential to make things more confusing for customers,” Sean Cudahy, an aviation analyst for The Points Guy, said of the Transportation Department proposal.
Eliminating the all-in pricing rule, meanwhile, would give airlines greater latitude to mislead customers, Cudahy added.
For example, customers could be drawn to a low base fare that excludes taxes and fees, only to discover at the point of purchase that the fare is far higher than they had expected.
“I think most consumers would be unpleasantly surprised to see taxes and fees added at the end,” Cudahy said. “In some cases, it can be a substantial portion of the price you pay.”
The Transportation Department disputes the notion that the changes could make comparison shopping for plane tickets more difficult because the full fare will still be advertised. Under current regulations, taxes and fees can’t be prominently displayed, while the proposed rule change would protect consumers from misleading pricing information, according to the agency.
Southwest’s concerns
Some airlines have similar concerns. Southwest Airlines said it opposes the rule change because of its potential to confuse customers, who are accustomed to interpreting fares as the all-in cost of a plane ticket.
“An entire generation of consumers has shopped and purchased air travel under this system,” Southwest said in a July 22 filing as the Transportation Department solicits public comment on the proposed rule changes.
Bryan Terry, an airline analyst at Alton Aviation Consultancy, told CBS News that there’s industrywide concern that the rule changes could make airfares more opaque to consumers.
“This DOT is much more business-friendly, and this administration is kind of turning the tide against the push toward transparency,” he said.
The public comment period for the proposed changes is open through Aug. 21, after which the Transportation Department will review feedback and issue a final rule.
