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Airline Ads About to Get Much More ‘Fare’

Companies cannot leave taxes and fees out of the total price


In 2011, the U.S. Court of Appeals implemented a rule that airlines had to include all mandatory taxes and fees when telling customers to cost of a ticket — and Allegiant Travel  (NASDAQ:ALGT), Southwest Airlines  (NYSE:LUV) and Spirit Airlines (NASDAQ:SAVE) have been working to challenge that rule.

Their challenge, though, was recently turned aside by the U.S. Court of Appeals. The ruling in the sky stands.

The airlines were unhappy with the fact that any breakdown of taxes and fees is required to be in a smaller size than the total cost and not “displayed prominently.” They cited their freedom of speech, saying they had a right to tell consumers as prominently as they wish how much the taxes cost.

Consumer groups, though, didn’t agree. In fact, they wanted the price to even include option fees like baggage. Spirit Airlines, for one, recently hiked such a fee dramatically.

The airlines claim their prices aren’t deceptive as it is, but you would think they wouldn’t go through the trouble of challenging the rule if that was the case — and you would think they would respond to what consumers want, especially considering that airline satisfaction hasn’t been too hot this year and the number of consumer complaints has been high.

-Alyssa Oursler, InvestorPlace Editorial Assistant

Article printed from InvestorPlace Media,

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