Biden takes aim at hidden fees in new airline ticket rule

New proposal would allow passengers to see a more complete price before they book

The White House said airlines made $700 million in cancellation and change fees last year. AP

US President Joe Biden on Monday will announce a proposed new rule that would let customers see a more complete price for airline tickets before they go through with a purchase.

Under the rule, any additional fees when booking a flight, including baggage and change fees, must be disclosed up front.

This would not only apply to airlines — which the White House said made about $700 million in cancellation and change fees last year — but to booking sites as well.

The White House said the Transport Department's new rule will protect consumers from surprise fees and promote competition.

“Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” Transport Secretary Pete Buttigieg said.

Mr Biden revealed earlier this month that his administration was working to push airlines to provide fairer treatment to passengers.

Under the proposal, airlines and ticketing agents must disclose customer- or itinerary-specific baggage fees, change or cancellation fees and family seating fees. This information must be presented clearly whenever consumers search for flights within, into or out of the US.

Airlines must also provide accurate information on fees to booking agents that sell or display the airline's fare and schedule information.

The president is scheduled to make the announcement during the White House Competition Council meeting later on Monday.

He is also expected to address how customers are unfairly treated by credit overdraft and internet provider fees.

The Associated Press contributed to this report