Major airlines sue Biden administration over fee disclosure rule

Major U.S. airlines are suing the U.S. Transportation Department over a new rule requiring upfront disclosure of airline fees, the latest clash between air carriers and the Biden administration.

The USDOT issued final rules last month requiring airlines and ticket agents to disclose service fees alongside the airfare, saying it would help consumers avoid unneeded or unexpected fees.

The airline group said in a statement on Monday the department's rule would confuse consumers and that its "attempt to regulate private business operations in a thriving marketplace is beyond its authority."

The airlines' previously unreported lawsuit calls the rule "arbitrary, capricious, an abuse of discretion and otherwise contrary to law."