Major U.S. airlines sue DOT over new transparency rules

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why major U.S. Airlines are suing the DOT.

Transcript

00:00 I'm Conway Gittins reporting from the New York Stock Exchange.

00:02 Here's what we're watching on the street today.

00:04 Stocks are coming off a mixed session on Wall Street,

00:07 with the Dow snapping its longest winning streak

00:10 since December.

00:11 Investors are reacting to the producer price index, which

00:14 showed wholesale inflation rose half of 1% in April,

00:18 hotter than the 0.3% analysts had expected.

00:21 Markets are looking ahead to more inflation data

00:24 with the release of the Consumer Price Index Wednesday.

00:28 In other news, US airlines are suing

00:30 the Department of Transportation over the agency's

00:33 new transparency rules.

00:35 In April, the DOT implemented rules

00:37 that would require carriers to disclose all fees up front,

00:41 including baggage and cancellation fees.

00:44 Now, some of the country's largest carriers--

00:46 Alaska, American, Delta, Hawaiian, JetBlue, and United--

00:50 have filed a lawsuit alleging the DOT overstepped its

00:54 authority with the new regulations.

00:57 The Biden administration wants airlines

00:59 to show all fees on the first page

01:01 where a price for a flight is listed.

01:04 The DOT claims the move would save travelers more than a half

01:07 a billion dollars a year.

01:09 The agency backed the rules, saying, quote,

01:12 "We will vigorously defend our rule,

01:14 protecting people from hidden junk fees,

01:16 and ensuring travelers can see the full price of a flight

01:20 before they purchase a ticket."

01:22 Many air travelers will be disappointed to learn

01:25 that the airline lobby is suing to stop

01:27 these common-sense protections.

01:30 Airline industry trade group Airlines for America

01:32 disagrees, accusing the DOT of trying, quote,

01:35 "to regulate private business operations

01:38 in a thriving marketplace."

01:40 That'll do it for your daily briefing from the New York

01:42 Stock Exchange.

01:43 I'm Conway Gittens with The Street.

01:46 [BLANK_AUDIO]

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