According to a recent Senate subcommittee report, airlines have amassed billions of dollars in ‘junk fees’ by charging customers extra for seat selection and carry-on baggage. The report, released on Tuesday, highlighted that between 2018 and 2023, five major US airlines generated over $12 billion solely from seat selection fees, a cost that used to be included in ticket prices. In 2023, United Airlines charged up to $319 for extra legroom, while Spirit Airlines charged up to $299, Delta Air Lines up to $264, Frontier Airlines $141, and American Airlines $140. The report noted that these fees are increasingly burdensome, especially for families wishing to sit together on flights.
The findings coincide with the outgoing Biden Administration’s efforts to enhance consumer protections in air travel, including a new rule mandating automatic refunds for canceled or significantly delayed flights. The report also revealed that low-cost carriers like Frontier and Spirit incentivized employees with $26 million in bonuses to enforce baggage policies, which often led to passengers being forced to pay additional bag fees or risk missing their flights.
Frontier Airlines defended its practices, stating that incentives for gate agents are meant to ensure compliance with baggage size regulations for equitable treatment of customers. In contrast, Spirit Airlines has not provided immediate comments on the report.
The Senate report suggested that some airlines might be circumventing federal taxes by designating certain fees as ‘non-taxable,’ putting compliant airlines at a disadvantage. The industry group Airlines for America insisted that its members adhere to all tax regulations.
Frontier argued that its unbundled fee structure helps democratize air travel, allowing more individuals and families to afford flights. Meanwhile, Spirit Airlines expressed disagreement with the report’s conclusions, maintaining transparency around its pricing and compliance with tax laws.
The Biden administration has also targeted ‘junk fees’, proposing regulations to eliminate seat-selection fees for families wanting to sit together. Transportation Secretary Pete Buttigieg remarked that the protections in place enjoy broad public support. The Senate Permanent Subcommittee on Investigations plans to hold a hearing with officials from American, Delta, United, Frontier, and Spirit to discuss these issues further.
