The Biden administration's new fee disclosure rule is being challenged by airlines in court.

• The Department of Transportation's new rule mandating early disclosure of add-on fees when booking flights was challenged by major airlines and an industry trade association, who asked a federal appeals court to overturn the rule.
• The airlines, including Alaska, American, Hawaiian, Delta, JetBlue, and United, contend that the DOT overstepped its legal bounds when it issued the rule.
• The rule will "confuse consumers" and "complicate the buying process," according to Airlines for America, who made this statement to CNBC Monday.

The Department of Transportation's new rule mandating early disclosure of add-on fees when booking flights was challenged by major airlines and an industry trade association, who asked a federal appeals court to overturn the rule.

Airlines for America, along with several other airlines, contend that the DOT overstepped its legal bounds when it issued the rule in late April and that the rule is "unjustified," "unreasonable," and a "misuse of power."

A petition for review was submitted to the U.S. Fifth Circuit Court of Appeals on Friday evening.

The airline fee disclosure rule was introduced by the Biden administration in September 2022. This rule requires airlines and online travel agencies to disclose fees for seat selection, checked baggage, and other add-ons upfront, alongside the airfare, instead of adding the costs at checkout based on a customer's selections.

At the time, President Joe Biden stated, "It's important to be aware of the total cost of your ticket when comparing options."

The rule will "confuse consumers" and "complicate the buying process," according to Airlines for America, who made this statement to CNBC Monday.

"The DOT's attempt to regulate private business operations in a thriving marketplace is beyond its authority. The group stated that airlines already provide consumers with complete disclosure of all fees associated with air travel before they purchase a ticket. The DOT ancillary rule is a bad solution in search of a problem."