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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThe Fifth Circuit vacated the U.S. Department of Transportation’s 2024 airline-fee rule on February 3, 2026, because the agency did not give the public a chance to comment on a study critical to the rule. Effective July 2, 2026, USDOT restored the earlier disclosure framework. Airlines still have fee-disclosure obligations, but the vacated rule’s requirement to show specified fees at the first itinerary results no longer applies under that framework.
What changed for airline passengers?
The change is about when and how certain extra fees must be disclosed—not whether airlines have to disclose fees at all. The 2024 rule, officially titled Enhancing Transparency of Airline Ancillary Service Fees, would have required specified baggage, change, and cancellation fees to appear at the first point after an itinerary search where fare and schedule information appeared. USDOT’s July 2026 final rule removed those new requirements and restored the previous framework.
That earlier framework requires baggage-related notices and disclosures, along with a central listing of ancillary-service fees on an airline’s website. It does not impose the vacated rule’s first-itinerary-results display requirement. The distinction matters when comparing prices: the full fare already includes mandatory carrier-imposed charges and government taxes or fees; ancillary fees are for additional services and are separate from that fare.
| Question | Vacated 2024 rule | Framework effective July 2, 2026 |
|---|---|---|
| When would fees appear? | Specified fees at the first post-search display of fare and schedule information. | Baggage notices at specified points in the booking process, plus an airline website listing of ancillary-service fees. |
| Which fees? | Specified first- and second-checked-bag, carry-on, change, and cancellation fees. | Baggage-related disclosures and a central ancillary-fee listing; non-baggage fees may be shown as ranges. |
| Which booking channels? | Airline and ticket-agent platforms, with fee information-sharing and search-related requirements. | The restored framework described here sets out airline website and e-ticket disclosures. |
| Legal status | Vacated by the Fifth Circuit on February 3, 2026. | Restored by USDOT’s final rule, effective July 2, 2026. |
What airlines must disclose under the restored framework
USDOT’s July 2, 2026 final rule describes the requirements that applied before the 2024 rule. They include:
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- Baggage-fee changes: An airline must disclose on its homepage for at least three months any increase in baggage fees or change in baggage allowances.
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These requirements do not mean every possible extra fee must be displayed beside every fare search result. The 2024 rule would have added that earlier, more specific display obligation, as well as related policy disclosures before purchase and requirements for sharing fee information with relevant ticket agents.
What the appeals court actually decided
In Airlines for America v. Department of Transportation, the Fifth Circuit, sitting en banc, concluded that DOT had not provided notice and an opportunity to comment on the Nicholas Rupp study, which was critical to the rule. The court applied the Administrative Procedure Act’s default remedy of vacatur. Its per curiam opinion said: “We conclude that DOT failed to comply with this provision. Therefore, we must apply the APA’s ‘default’ remedy— vacatur.” Read the Fifth Circuit’s February 3, 2026 opinion.
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The holding was procedural. It did not decide the full extent of DOT’s statutory authority to regulate airline fee disclosures, nor did it conclude that all airline fees are lawful or that disclosure rules are unnecessary. USDOT’s later final rule describes its action as restoring the regulations that existed before the 2024 rule was published: USDOT’s July 2, 2026 final rule.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the case and rule unfolded
- April 24, 2024: USDOT announced the final rule requiring earlier disclosure of selected ancillary fees. The agency estimated it would save consumers over $500 million annually; that was a projection, not a measured result.
- July 29, 2024: A Fifth Circuit panel stayed the rule while litigation continued.
- January 28, 2025: A later panel found DOT had statutory authority to prescribe regulations, but left the stay in place because of the procedural issue. This history is recounted in the later final rule.
- February 3, 2026: The Fifth Circuit sitting en banc vacated the 2024 rule for the notice-and-comment failure.
- July 2, 2026: USDOT’s conforming final rule restoring the earlier disclosure framework took effect.
USDOT’s original announcement explained the 2024 rule and its projected consumer savings: April 24, 2024 announcement.
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