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Are new airline-fee rules helping travelers?

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A new federal rule requires airlines disclose extra fees through a prominent link on their websites. It's just the first volley in what could be a protracted war between airlines and the government over disclosure, and it's a big deal since airlines raked in $3.3 billion in luggage fees last year.

By Christopher Elliott

Tribune Media Services

Search for a flight between Washington and Los Angeles on United.com and you'll find a notice posted high above the fares saying, "Additional baggage charges may apply."

On the Delta Air Lines site, a query for flights from Baltimore to Memphis yields a similar warning — albeit in slightly smaller type — that "there may be additional fees for your carry-on/checked baggage."

And on USAirways.com , a check for flights between Philadelphia and Phoenix reveals a disclaimer at the top of the screen: "Does not include taxes and optional fees. Checked baggage fees may apply."

None of this may look like a big deal to you, but it is. Because there's big money at stake. The domestic airlines raked in $3.3 billion in luggage fees last year, an increase of more than half a billion dollars over 2009.

For years, air travelers have complained that airlines weren't adequately disclosing these so-called ancillary fees — indeed, that airlines were benefiting from a widespread assumption that checking a bag was included in the airfare, as it still is on Southwest Airlines and JetBlue Airways. But on Aug. 23, a new Transportation Department regulation went into effect, requiring airlines to disclose all fees for optional services through a prominent link on their websites. It's just the first volley in what could be a protracted war between airlines and the government over fee disclosure.

George Hoffer, a University of Richmond transportation economist, believes that the new rule makes sense. "Giving more price information facilitates rational decision-making," he says. "Without such information, markets can't function properly.

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