On Monday, the Biden administration revealed its intent to pursue legal action against airlines and travel companies that attempt to add hidden costs after you've already selected your trip and paid for it.

The new regulation is part of Biden's broader attempts to promote competition and will be subject to review and public comment over the next 60 days. During a Monday afternoon White House event, Vice President Biden spoke highly of the ongoing efforts to put pressure on airlines to change their practices.

It's all part of Transportation Secretary Pete Buttigieg's recent pledge to ease the agony of air travel, but other major problems, including frequent flight cancellations and an ongoing pilot shortage, remain unresolved.

When comparing prices, "You should know the full cost of your ticket, right when you are comparison shopping to begin with so you can pick the ticket that actually is the best deal for you," Biden said Monday.

President Joe Biden speaks during the third meeting of the White House Competition Council in the State Dining Room of the White House on September 26. 

On Monday, the Biden administration revealed its intent to pursue legal action against airlines and travel companies that attempt to add hidden costs after you've already selected your trip and paid for it.

The new regulation is part of Biden's broader attempts to promote competition and will be subject to review and public comment over the next 60 days. During a Monday afternoon White House event, Vice President Biden spoke highly of the ongoing efforts to put pressure on airlines to change their practices.

It's all part of Transportation Secretary Pete Buttigieg's recent pledge to ease the agony of air travel, but other major problems, including frequent flight cancellations and an ongoing pilot shortage, remain unresolved.

When comparing prices, "You should know the full cost of your ticket, right when you are comparison shopping to begin with so you can pick the ticket that actually is the best deal for you," Biden said Monday.

Vice President Joe Biden addresses the White House Competition Council during its third meeting, held on September 26, 2022, at the White House's State Dining Room in Washington, DC. Image by Mandel NGAN / AFP. Picture by MANDEL NGAN/AFP (Released under GNU Free Documentation License)
Vice President Joe Biden addresses the White House Competition Council at its third meeting on September 26. The event took place in the White House's State Dining Room. Photographed by Mandel Ngan/AFP/Getty Images )
Baggage fees, schedule changes, and cancellation penalties would all fall under the new guidelines. They will also apply to the family seating costs that airlines have been known to add at the very end of the booking process or even after a ticket has been bought, much to the dismay of their customers.

Assist vacationers in making well-informed choices.
The proposed regulation would require additional costs, such as those for flight changes and checked bags, to be posted alongside the base price at the time of the first online pricing display. Any flight that originates or terminates in the United States would be subject to the new regulation.

Buttigieg said in a statement that "airline passengers deserve to know the full, true cost of their flights before buying a ticket," and that the new regulations "will help travelers make informed decisions and save money."

In a statement to Yahoo Finance, Airlines for America, the trade organization representing major US air carriers, said that its airlines are "committed to providing the highest quality of service, which includes clarity regarding prices, fees, and ticket terms." According to the release, "Passenger carriers provide details regarding the breakdown of airfares on their websites, providing consumers clarity regarding the total cost of a ticket."

Airlines such as American (AAL), United (UAL), Delta (DAL), Southwest (LUV), JetBlue (JBLU), Hawaiian (HA), and Alaska (AL) are all represented by this group (ALK).

The step taken by the Biden administration on Monday is the latest attempt to enhance the flying experience. This includes a new "Airline Customer Service Dashboard" and a commitment of $1 billion to improve infrastructure at U.S. airports.

Secretary of Transportation Pete Buttigieg testifies before Congress in July. 

Competition is essential to a healthy capitalist economy.
However, the government hasn't been able to solve the larger systemic issues, such as the scarcity of pilots and the subsequent wave of cancellations earlier this summer.

The Transportation Department is now reviewing a new regulation regarding reimbursements in the case of flight cancellations; this review process will take 90 days. The government is also taking legal action against 10 airlines for excessively slow refund processing.

On Monday, Vice President Biden claimed the work of his administration was paying off. They unexpectedly cancel your reservation and charge you a price to reschedule. "Come on, dude," he pleaded. It's completely unfair, period.

On Monday, Airlines for America said that its members "offer a range of options — including fully refundable fares" to make air travel more affordable and convenient for passengers.

While delays are still an issue, Melius Research Director Conor Cunningham said in a recent Yahoo Finance Live interview that some of the general constraints on flyers may be reducing. Although he acknowledged that the situation was not ideal, he said, "Delays are better than cancellations, though obviously not great, but we're moving in the right direction, I guess."

The declaration made on Monday is the result of the third meeting of Vice President Biden's White House Competition Council, which includes Mayor Pete Buttigieg, Secretary of the Treasury Janet Yellen, and Secretary of Commerce Gina Raimondo, among others. This organization's lofty goal is to increase rivalry in all sectors of the economy, from banking to healthcare to technology to transportation.

The White House has been promoting its initiatives to reduce expenses in the face of inflation all week. On Monday, White House press secretary Karine Jean-Pierre said that "due to lack of competition," the typical American loses $5,000 annually.

Biden praised the Transportation Department's decision and predicted that other agencies will follow suit in their spheres of influence, including fees from ISPs, banks, and mobile carriers in his speech on Thursday.

Vice President Joe Biden stated, "Capitalism without competition isn't capitalism, it's exploitation and we're building an economy that works for everyone,"