New York, January 26 (FinanceEnquiry.com) - New airline price rules will go into effect from Thursday making it mandatory for airlines to include the cost of taxes and fees in any advertised price. According to the U.S. Transportation Department, it will now become obligatory for airlines and travel agencies to display an all-in number combining the base fare with all applicable taxes and fees. However, the rule does not cover airline charges for optional services such as checked bags or in-flight Wi-Fi. It is expected that total ticket costs will not change.

As a result of this rule, teaser fares will disappear from the scene because airlines used to promote trans-Atlantic flights for as little as $150 and the fliers had to pay nearly $800. Advertising will now have to be more realistic as the airlines will have to show the prices at which a ticket can actually be bought.

Many airlines such as Delta, American and United Commercial Holdings as well as Expedia Inc., the largest online travel agency have already been adjusting advertising and data coding in preparation for the rule. Spirit Airlines Inc., which promotes discounted tickets made the necessary adjustments this week. It also accused U.S. authorities of disguising the scope of fees and taxes by using the rule.
The most apparent change will be in the case of international tickets where taxes and fees can sometimes amount to double or triple the base fare amount.