AirFAIR Act Caps Disaster Airline Price Hikes: 30% Increase Now Considered Illegal Price Gouging

The newly proposed AirFAIR Act aims to put the brakes on airlines and ticket sellers who jack up prices when people are most desperate to travel—that is, during a declared disaster or emergency. Specifically, this bill makes it an unfair and deceptive practice for any airline or ticket agent to charge an “excessive” price for air travel when a state, D.C., or territorial emergency has been officially declared. This is a direct consumer protection measure that recognizes that when disaster strikes, people often need to fly out quickly, and they shouldn’t be price-gouged for it.

The 30% Rule: Putting a Number on Gouging

The most important detail here is the math. The bill mandates that the Secretary of Transportation must define what counts as an “excessive” price increase, but it sets a clear floor: any price increase of 30 percent or more is automatically considered excessive. This is huge because it removes the ambiguity. If you check ticket prices the day before a hurricane is declared and they are $300, and then they jump to $400 (a 33% increase) the day after, that’s officially considered illegal price gouging under this new rule. For anyone who has tried to evacuate a disaster zone, this clear, quantifiable limit is a lifeline that prevents airlines from exploiting a crisis.

Who This Helps (And Who Pays)

This legislation is a win for travelers, especially those who live in areas prone to natural disasters or who rely on air travel for emergency evacuations or critical family needs. Think about the family trying to fly out of a wildfire zone, or the worker needing to get back home to check on family after a regional flood. This bill ensures that their critical transportation costs don't suddenly triple overnight. It’s about fairness and access during high-stress situations. The groups who might feel the squeeze are the airlines and ticket agents, who will lose the ability to maximize revenue during peak emergency demand. They will need to adjust their dynamic pricing models to comply with the new 30% cap when a disaster is declared.

Looking Back to Move Forward

Beyond setting new rules for the future, the AirFAIR Act also requires a look at the past. The Administrator of the Federal Aviation Administration (FAA) must conduct a study on whether ticket sellers have engaged in unfair pricing practices during past disasters and emergencies. The FAA then has one year to report these findings back to Congress. This provision adds a layer of accountability, suggesting that lawmakers want to understand the scope of the problem before this law was enacted. It’s a smart move that backs up the new pricing rules with historical data and analysis.