| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
The Biden administration proposed a new rule on Thursday that would ban airlines from charging junk fees to seat families together on a flight.
The law, being proposed by the U.S. Department of Transportation (DOT), would require airlines to seat parents next to their young children for free when adjacent seating is available at booking.
The rule would lower the cost of flying with young children for a family of four as much as $200 if the seat fees are $25, the DOT said.
"Many airlines still don't guarantee family seating, which means parents wonder if they'll have to pay extra just to be seated with their young child,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “Flying with children is already complicated enough without having to worry about that.”
Airlines usually charge extra fees to families that want to reserve several seats close to each other so parents can more easily tend to their young children. Families that opt to skip the fees often require airlines to ask other passengers to voluntarily change their seating assignments so that families can sit together.
Buttigieg has pushed the 10 biggest airlines to voluntarily stop charging the fees after President Joe Biden called on Congress to ban the charges during a State of the Union address in 2023.
So far, four airlines — Alaska Air Group, Inc. (NYSE:ALK), American Airlines Group Inc. (NASDAQ:AAL), Frontier Group Holdings, Inc. (NASDAQ:ULCC) and JetBlue Airways Corporation (NASDAQ:JBLU) — have complied with the request, the DOT said.
United Airlines Holdings, Inc. (NASDAQ:UAL) and Delta Air Lines, Inc. (NYSE:DAL) say they do not charge family seating fees.
United Airlines announced in February 2023 a new seat map feature that finds available adjacent seats at the time of booking. The online program reviews available free economy seats and then opens free upgrades to available preferred seats, if needed.
Airlines who still charge fees include Allegiant Travel Company (NASDAQ:ALGT), Hawaiian Holdings, Inc. (NASDAQ:HA), Southwest Airlines Co. (NYSE:LUV), Spirit Airlines, Inc. (NYSE:SAVE), according flightrights.gov.
Emails to the four other airlines seeking comment on the proposed ban were not immediately returned.
Buttigieg has handed Congress a legislative proposal to ban the fees after the legislative body authorized the DOT to propose the rule as part of the bipartisan FAA Reauthorization Act of 2024.
The rule would prohibit airlines from charging fees for children under 14 years old and require airlines to provide refunds, free rebooking and other options if adjacent seating is not available.
Price Action: The world’s three largest airlines — Southwest, American and Delta — trended downward as of mid-day trading on Thursday.
Photo: Friends Stock via Shutterstock
CORRECTION 8.1.2024: Delta Airlines and United Airlines do not charge for family seating fees, as originally reported.
