Airline executives to present defense of seat fees to Senate panel.

• A Senate panel will hear from executives from American, United, Delta, Frontier, and Spirit regarding their seating fees.
• Between 2018 and 2023, seating fees from U.S. carriers totaled over $12 billion.

On Wednesday, U.S. airline executives will appear before a Senate panel to defend their seating fees, following accusations from the subcommittee that the industry charges "junk" fees to generate billions in revenue.

According to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations, the five airlines - American, Delta, United, Spirit, and Frontier - generated a total of $12.4 billion in seating fees between 2018 and 2023.

Sen. Richard Blumenthal, D-Conn., stated in written remarks before the hearing that airlines today view their customers as nothing more than walking piggy banks to be milked for every possible penny.

The report stated that the extra charges were for seats with extra legroom, preferred locations closer to the front of the plane, window or aisle seats.

"Stephen Johnson, American's chief strategy officer, stated in written testimony that their seat selection products are voluntary. He added that customers who want to sit in more in-demand locations can pay for more desirable seats."

The airline industry has been identified as a potential target for cuts by the Biden administration and certain lawmakers, who have pledged to reduce "junk" fees.

Large airlines' executives have defended their strategy of charging for economy services and add-on fees for seat and bag selection, which were previously included in the ticket price, and claimed that these options are clearly communicated to customers.

To boost revenue, carriers have been competing to add more premium seats on board.

"Johnson stated that fares that necessitate payment for a specific seat, such as those with extra legroom or a different fare class, are marked with a symbol indicating that additional fees for a seat in that class will be required. Additionally, information about potential bag and other fees is also provided."

Competitors such as Spirit and Frontier, who introduced the fee-based model in the U.S., prompted others to follow suit with their own basic economy class. However, Spirit declared bankruptcy in November following a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition, and more demanding consumer tastes.

The hearing, commencing at 10 a.m. ET, will feature testimony from executives from Delta, United, Frontier, and Spirit.