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White House: New rule will show ‘true cost’ of plane tickets

September 26, 2022  By Seung Min Kim, The Associated Press

WASHINGTON (AP) — President Joe Biden will announce a new initiative Monday that will eventually allow consumers to see a more complete price on airline tickets — including baggage and change fees — before they buy, as the White House continues to search for ways to lower costs for Americans amid persistently high inflation.

The White House says the new rule from the Transportation Department will prevent airlines from hiding the “true cost” of airline tickets, which would help consumers save money up front and encourage more competition among airlines to offer better fares. The requirement will apply not only to airlines directly but also on search sites such as Kayak and Expedia.

Airlines made nearly US$700 million on cancellation and change fees last year, according to the White House. The announcement was first reported by CNN.

The president will make the announcement on Monday afternoon at a meeting of the White House Competition Council, established last year as a way for his administration to find cost-saving measures for consumers. It will be the third time that the group, chaired by National Economic Council director Brian Deese, has met.


At the meeting, Biden plans to push other federal agencies to take similar cost-saving actions, particularly by increasing transparency on hidden fees that can balloon the true cost of goods and services.

One example is a proposal from the Federal Communications Commission that would require internet service providers to better outline fees and charges on what the administration calls a “broadband nutrition label.” And the Agriculture Department on Monday will also announce new actions meant to encourage competition in various agricultural markets.

The administration has taken similar actions when it comes to bank and credit card fees, which the White House says have saved consumers $3 billion annually compared to before the COVID-19 pandemic.

News from © Canadian Press Enterprises Inc., 2021


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