White House investigates airline price gouging | Wilnesh News

The U.S. Transportation Department said Tuesday that it is contacting airlines to understand flight capabilities in areas hit by Hurricane Helene and those bracing for Hurricane Milton amid growing concerns about price gouging.

“DOT officials have contacted airlines to obtain additional information on flight capacity and affordability in affected areas,” point a spokesperson told CNBC in a statement.

Alarms around price gouging often become louder during disasters like hurricanes, when demand surges as consumers scramble for last-minute flights and items like life-saving supplies.

Price gouging is the practice of retailers artificially raising prices significantly without increasing their costs. In times of crisis, when urgent demand far exceeds supply, consumers are particularly vulnerable to price gouging.

Transportation Secretary Pete Buttigieg said in a post on Monday that his agency is “closely monitoring flights in and out of areas affected by Hurricane Milton to ensure airlines are not charging exorbitant fares.”

“The department takes seriously all allegations of airline price gouging,” he added.

Florida is bracing for Hurricane Milton to make landfall on its west coast on Wednesday, deepening the damage caused by Hurricane Helene, which ravaged the southeastern United States a week ago.

In areas of Milton where the worst impacts are expected, local officials have urged residents, and in some cases ordered them, to evacuate.

Incoming and outgoing flights Tampa International Airport It has been suspended since Tuesday morning. nearby orlando international airport Operations are scheduled to cease at 8:00 a.m. ET on Wednesday.

American Airlines and United Airlines have increased flights to help people leave the area.

Still, demand for plane tickets and other goods has surged, causing some prices to rise and fueling concerns that companies could take advantage of consumers in a time of crisis.

The state is preparing for Milton after the Florida Attorney General’s Office on Saturday extended the state’s “price gouging hotline” to give consumers a way to file complaints.

The Florida Attorney General’s Office has received more than 450 consumer contacts alleging Helene’s price gouging, “primarily involving fuel,” a spokesperson told CNBC. The office has received more than 200 contacts related to Milton, mostly for fuel and water.

While price gouging fears are normal during natural disasters, the term “price gouging” alone takes on political significance so close to the presidential election, less than a month away.

Democratic candidate and Vice President Kamala Harris has proposed a federal ban on price gouging by the grocery industry as part of her campaign’s economic platform, even as she acknowledged that most businesses would not artificially inflate prices.

“These storms and hurricanes,” Harris said during an interview on “The Howard Stern Show” on Tuesday. “When people are desperate during an emergency, some bad actors will jack up prices. We need to go after them.”

— CNBC’s Leslie Josephs contributed to this report.