A Senate subcommittee report released on Tuesday exposed that airlines have been profiting from so-called “junk fees” that include additional charges for seat selection and carry-on bags – raking in billions in profit.
The report even suggests that some airlines offer their employees cash incentives to spot passengers attempting to avoid these extra costs.
According to the Senate Subcommittee report, from 2018 to 2023, five US airlines reportedly pocketed over $12 billion solely from seat selection fees, a cost that was previously included in the ticket price.
In 2023, United Airlines charged up to $319 for an extra legroom seat, Spirit Airlines up to $299, Delta Air Lines up to $264, Frontier Airlines $141, and American Airlines up to $140.
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The report states, “Seat fees have grown more expensive and farther-reaching,” adding that these five airlines charge passengers extra for additional legroom, aisle, and window seats, or even selecting a seat in advance, forcing parents with minor children to pay to sit together.
While these ancillary fees are supposed to be optional, the report implies that some fees are charged for aspects of travel that are “not reasonably avoidable,” including low-fare passengers having any carry-on baggage or children traveling with parents.
The subcommittee’s chair, Sen. Richard Blumenthal (D-CT), lambasted airlines for burdening fliers with excessive fees, stating, “Our investigation has exposed new details about airlines exploiting passengers with sky-high junk fees.”
The report has unveiled, “This report pulls back the curtain on tactics like dynamic pricing that burden travelers and boost airline revenue.”
Blumenthal warned as the holiday season approaches: “As we head into the Thanksgiving weekend,” he said, “we regret that travelers will be charged millions of dollars in fees that have no basis in cost to the airlines but simply fatten their bottom lines.”
On December 4th, top brass from American, Delta, United, Frontier, and Spirit Airlines are set to speak in front of Congress about the report.
This comes as the Biden Administration is touting its success in safeguarding passenger rights. The Department of Transportation is implementing a new rule requiring airlines to automatically refund customers for cancellations or significant delays, a policy announced earlier this month.
Frontier Airlines employees reportedly make an extra $10 for every piece of luggage they force passengers to check at the gate. One Frontier official told the Subcommittee that bag policy enforcement was necessary because the” airline does not want customers to be taking more or stealing from the airline.”
Frontier Airlines has confirmed to CNN that they’re offering a little extra cash to gate agents, stating: “The commission for gate agents is simply designed to incentivize our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly, including the majority who comply with the rules,” as the airline puts it.
The report encourages Congress to get tougher on fee transparency, urging them to make it easier for flyers to figure out what they’ll actually be paying by having airlines report detailed fee info to the Department of Transport (DOT). This would help the DOT keep an eye on how competitive the industry really is.
In addition, the report calls for the DOT to investigate whether these incentives are leading to shady fee collection tactics and to crack down on sneaky or unfair fee practices.
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