Effective January 26, 2012, the US Department of Transportation required airlines and ticket agents to include mandatory taxes and fees in airfares they advertise. In addition, several new regulations aimed at protecting airline passengers went into effect. Let's take a closer look at the new rule and see how it affects advertising and air travel.
Advertised Airfares
Under the new rule, airlines and ticket agents must include all government-imposed fees, mandatory taxes and fuel surcharges in the airfares they advertise. The days of "Fly to Rome for $179!" (without mention of the fare for the return leg of the trip or of the required excise tax, September 11 security fee, segment fees or airport passenger facility fees, all of which every US airline passenger must pay) are over. Advertised fares must now include all of these previously-hidden airfare fees.
Checked Baggage Fees
Airlines must provide a link on their websites to a page which explains checked baggage fees so that prospective passengers will understand what they will have to pay before they buy and fly. Checked baggage fees and other non-mandatory fees charged by airlines do NOT have to be included in advertised fares.
Baggage Fees on Code-Share and Alliance Flights
The new rule requires that, in most cases, code-share and alliance flights offer the same checked baggage fees and allowances from the beginning of the trip to its conclusion. If a passenger purchases a ticket that includes flights operated by a code-sharing airline, the checked baggage fees and baggage allowances will now be standardized – if the ticket is bought through United Airlines, for example, but a code-share partner operates one leg of the trip, United's baggage fees and allowances will apply for the duration of the trip.
Other Fees
In most cases, airlines will be required to provide links to web pages describing ticket change fees and other non-mandatory fees.
24-Hour Grace Period
Under the new rule, passengers can book a flight and wait up to 24 hours to pay for that flight without incurring a fare increase. Alternatively, passengers may pay up front and then cancel or change their flights without penalty within 24 hours. These provisions apply when flights are booked at least one week prior to the intended departure date. Flights booked less than a week before departure are not covered by the new rule.
Passenger Notifications
Airlines must now provide timely notification to passengers of flight cancellations, flight diversions and flight delays over one-half hour. In the case of flight delays, airlines must provide information to passengers within 30 minutes. This notification could come from several sources, including in-airport announcers, announcements from flight attendants, airport departure information screens or automated messages from your airline.
Ticket Price Increases
In most cases, airlines will not be able to increase the price of travel once a passenger has purchased a ticket.
The Bottom Line
At first glance, the effects of the new Department of Transportation rule may seem negative. Advertised airfares will increase – but it's an illusory increase. Passengers must pay government-imposed fees, taxes and airline fuel surcharges, and they have been doing so for quite some time. The difference is that after January 26, 2012, these amounts must be included in advertised fares. Nothing has changed except what must be disclosed.
Remember, however, that checked baggage fees and other non-mandatory charges are not required to be included in advertised airfares. You'll still need to do your homework and comparison shop before you buy an airline ticket.
But, of course, you now have 24 hours in which to change your mind. Without penalty.
