 Solution

Let $R$ be reflection in the plane. Choose a point of the regular intersection curve and a unit tangent vector $w$ to it. Both the point and $w$ are fixed by $R$. The unique local geodesic with these initial data is carried by the surface isometry $R$ to another geodesic with the same initial data. Uniqueness therefore gives $R\gamma =\gamma$. Its image lies in the fixed-point set of the reflection, namely the plane, hence locally in the intersection curve. Thus the intersection curve is a geodesic, when parametrized by arclength.