Airlines criticized for earning vast sums through seat fees, according to Senate report.
- A Senate panel report found that between 2018 and 2023, the five airlines - American, Delta, United, Frontier, and Spirit - collectively earned $12.4 billion from seating fees.
- Executives from those airlines will testify before the Senate Permanent Subcommittee on Investigations next week.
- The Biden administration has pledged to intensify examination of "junk fees" charged by airlines, hotels, and other corporations.
On Tuesday, the Senate subcommittee criticized both large and small U.S. airlines for charging fees to select seats on flights.
From 2018 to 2023, Spirit and Frontier Airlines generated a total of $12.4 billion in seating fees, including those for extra legroom and preferred seats, according to a report from the Senate Permanent Subcommittee on Investigations.
Airlines have eliminated ticket-change fees for standard economy tickets but have introduced fees for popular or spacious seats. Additionally, airlines are competing to add more premium seats to boost revenue.
The Biden administration has made it a priority to eliminate "junk fees" charged by airlines. At a December 4 hearing titled "The Sky's the Limit—New Revelations About Airline Fees," Sen. Richard Blumenthal, D-Conn., the subcommittee's chair, invited airline executives to testify about the practice.
The largest U.S. carriers are represented by Airlines for America, which stated that air travel has become more affordable and allows customers to select their onboard payment options.
The subcommittee's failure to comprehend the worth of the highly competitive U.S. airline industry to customers and employees is evident in the report. Instead, the report has become a holiday travel talking point, the group stated.
The report accused budget airlines Spirit and Frontier of paying gate agents $26 million from 2022 to 2023 to catch passengers who allegedly violated airline bag policies, resulting in passengers having to pay a bag fee or miss their flight.
Our airport policies ensure that guests are treated fairly and equally, and we comply with all tax laws and regulations while being transparent about our products and pricing.
Frontier didn't immediately comment.
Business News
You might also like
- SpaceX's Starship is grounded by the FAA after a mid-flight explosion, causing property damage on Turks and Caicos.
- The unparalleled women's basketball league commences on Friday. Discover all the details here.
- PepsiCo faces allegations of price discrimination from the FTC, which claims it is increasing costs for consumers.
- The imposition of tariffs by Trump has prompted China to accelerate the shipment of goods to the US.
- Medicare drug price negotiations include Ozempic in the next round. Here are the 15 medications.