AirFAIR Act

Bill Number

H.R. 5502

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Transportation and Public Works

Status

Introduced

Latest Action

2025-09-19: Referred to the Subcommittee on Aviation.

Last Updated

2026-06-03T08:06:05Z

AI-Generated Summary

Purpose

The AirFAIR Act (H.R. 5502) aims to protect consumers from excessive price increases on airline tickets during declared disasters or emergencies by classifying such practices as unfair or deceptive. It directs federal agencies to establish standards and investigate related issues to promote airfare fairness.

Key Provisions

• Prohibition on Excessive Price Increases: Amends Section 41712 of Title 49, United States Code (which addresses unfair or deceptive practices in air transportation), to make it illegal for ticket agents, air carriers, foreign air carriers, or other sellers to impose excessive price hikes on air tickets during disasters or emergencies.
• Regulatory Standards: Requires the Secretary of Transportation to issue regulations defining "excessive" increases, with a minimum threshold of 30% or more treated as excessive.
• Definitions: A "disaster" or "emergency" is defined as one declared by a state, the District of Columbia, or a U.S. territory or possession.
• Study and Report: Mandates the Federal Aviation Administration (FAA) Administrator to conduct a study on unfair ticket sales practices during disasters or emergencies and submit a report to Congress within one year of the Act's enactment.

Significant Changes to Existing Law

• Adds a new subsection (d) to Section 41712 of Title 49, United States Code, expanding the definition of unfair or deceptive practices to specifically include excessive airfare increases tied to disasters or emergencies.
• Introduces mandatory regulatory rulemaking by the Department of Transportation (DOT) to set clear pricing thresholds, which did not previously exist in this context.
• Requires a one-time FAA study, creating a new oversight mechanism without altering core FAA duties.

Potential Impacts

• On Government Agencies: Increases workload for the DOT to develop and enforce new regulations, potentially leading to investigations or penalties for violations. The FAA will need resources for the required study and report.
• On Citizens: Protects travelers from sudden, sharp price spikes during crises (e.g., hurricanes or pandemics), making air travel more affordable and accessible when evacuation or relocation is urgent.
• On International Relations: May affect foreign air carriers operating in the U.S., requiring compliance with U.S. pricing rules during domestic emergencies, but has limited direct impact on broader international agreements.
• Broader Effects: Could deter price gouging overall in the airline industry, though enforcement might vary by disaster scale.

Main Stakeholders Affected

• Consumers and Travelers: Primary beneficiaries, gaining safeguards against exploitative pricing during emergencies.
• Airlines and Ticket Sellers: Air carriers (U.S. and foreign), ticket agents, and online platforms face new compliance requirements and potential fines for violations.
• Government Entities: DOT (for regulations and enforcement), FAA (for the study), and Congress (for receiving reports and overseeing implementation).
• State and Local Governments: Involved indirectly through disaster declarations that trigger the law's protections.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens consumer protection under existing aviation law by providing a clear enforcement tool against price gouging, potentially leading to civil penalties or lawsuits. The 30% threshold offers a quantifiable standard, reducing ambiguity in legal challenges.
• Constitutional: Aligns with Congress's authority to regulate interstate commerce (including air travel) under the Commerce Clause; no apparent conflicts with free market principles, as it targets only excessive increases in specific crisis scenarios.
• Political: Addresses public concerns about corporate profiteering during crises, appealing to consumer advocacy groups. It may spark debates on government intervention in pricing versus industry self-regulation, with implementation depending on congressional funding and agency priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Velázquez, Nydia M. [D-NY-7]

Recent Actions

• 2025-09-19: Referred to the Subcommittee on Aviation.
• 2025-09-18: Referred to the House Committee on Transportation and Infrastructure.
• 2025-09-18: Introduced in House
• 2025-09-18: Introduced in House

Bill Versions

• Airline Freeze of Astronomical Increases in Rates Act — issued 2025-09-18 — PDF (3 pages)