U.S. airline executives are set to defend their seating fees before a Senate panel today, Dec. 4, after the subcommittee accused the industry of charging so-called “junk” fees to bring in billions in revenue.
American, Delta, United, Spirit and Frontier brought in $12.4 billion in seating fees between 2018 and 2023, according to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
“Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime,” Sen. Richard Blumenthal, the subcommittee’s chair, said in written remarks before the hearing.
Those extra charges are for seats with additional legroom, as well as those in “preferred” locations that are closer to the front of the plane, or window or aisle seats, the report noted.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s chief strategy officer, said in written testimony ahead of the hearing. “For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats.”
The Biden administration and some lawmakers have promised to crack down on junk fees and have cited the airline industry as a target for cuts.
Executives at large airlines have defended their strategy to offer several types of economy service and add-on fees for selection of certain seats or checked bags—a process called “unbundling” or charging separately for goods and services that were once included in the price of a ticket—and have said these options are communicated to customers.
Meanwhile, it’s been reported that carriers have been racing to add more premium seats on board to increase revenue.
Discounters such as Spirit and Frontier, which pioneered the fee-based model in the U.S., are credited with prompting competitors to come up with their own bare-bones basic economy class. Spirit filed for Chapter 11 bankruptcy protection in November after a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition and more demanding consumer tastes.
In addition to seat fees, the report also noted the rise in bag fees, and passenger attempts to escape them. Frontier and Spirit paid $26 million to gate agents and other personnel between 2022 and 2023 to catch passengers allegedly not following airline bag policies, often forcing those passengers to pay a bag fee or miss their flight. Frontier personnel can earn as much as $10 for each bag a passenger is forced to check at the gate.
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