FIFTH CIRCUIT WILL RECONSIDER ITS RULING ON ANCILLARY FEES RULE
November 21, 2025
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On October 2, 2025, the United States Court of Appeals for the Fifth Circuit announced that it will reconsider a January 28, 2025 ruling which determined that DOT had authority to issue rulemaking targeting unfair or deceptive fees. While the Fifth Circuit’s prior ruling had remanded the Ancillary Fees Rule to remedy procedural shortcomings during the agency rulemaking process, the January 2025 decision by a three-judge panel held that DOT nevertheless had authority to issue rulemaking requiring airlines to fully disclose fees upfront when a passenger books his or her flight. Airlines for America, on behalf of major U.S. air carriers, objected to the ruling and requested that all judges on the Fifth Circuit review the three-judge panel decision. The Fifth Circuit subsequently granted the request, meaning that oral arguments will now be held to determine whether DOT had statutory authority to issue the Ancillary Fees Rule in the first place.
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