Contact Information
Airlines Rake in Billions from Controversial 'Junk Fees', Report Reveals

A recent report from a Senate subcommittee has revealed that airlines have amassed billions of dollars through what are termed “junk fees,” which include extra charges for selecting seats and carrying bags. Between 2018 and 2023, five major U.S. airlines generated over $12 billion from seat selection fees, costs that used to be incorporated into the price of tickets. The report, made public on Tuesday, highlights that these airlines have incentivized employees to identify customers trying to dodge carry-on bag fees. In 2023, United Airlines charged up to $319 for extra legroom, while Spirit Airlines charged as much as $299. Delta Air Lines, Frontier Airlines, and American Airlines followed with charges ranging from $140 to $264.

The report indicates that these fees have become increasingly burdensome, particularly for families with young children who often find themselves compelled to pay extra to sit together. The Senate Permanent Subcommittee on Investigations has noted that the Biden Administration is making strides in consumer protection in the airline industry, with new regulations mandating automatic refunds for canceled or significantly delayed flights.

Some airlines, including Frontier and Spirit, reportedly spent $26 million in past years incentivizing agents to enforce bag policies, which often leads to passengers being forced to check their bags at the gate. Agents can earn bonuses for identifying non-compliant passengers, exacerbating frustrations among travelers. In response, Frontier stated that these measures are meant to ensure fair treatment for all customers.

The report also raises concerns about airlines potentially dodging federal taxes by categorizing some fees as “non-taxable,” creating an uneven playing field for airlines like Delta and American that do not engage in such practices. In defense of their pricing strategies, industry lobby group Airlines for America argued that its members comply with all applicable laws and regulations. Frontier emphasized its commitment to making air travel affordable, stating that their unbundled fee structure has enabled millions of people to fly. Spirit Airlines, while disagreeing with aspects of the report, affirmed its transparency regarding fees and compliance with tax regulations.

The issue of “junk fees” has gained traction under the Biden administration, prompting proposed regulations aimed at eliminating seat selection fees for families. As the Senate Permanent Subcommittee on Investigations prepares for a hearing with officials from major airlines, many speculate about the future of consumer protections in air travel.

Leave a Reply

Your email address will not be published. Required fields are marked *