A new report from a Senate subcommittee has revealed that airlines have earned billions of dollars from what are known as ‘junk fees’, charging passengers extra for seat selection and carry-on baggage. The Senate Permanent Subcommittee on Investigations published the report on Tuesday, highlighting that between 2018 and 2023, five major U.S. airlines generated over $12 billion from seat selection fees alone, a cost that was previously included in the ticket price. The report noted that in 2023, United Airlines charged up to $319 for extra legroom seats, while Spirit Airlines charged up to $299, Delta Air Lines $264, Frontier Airlines $141, and American Airlines $140 for similar fees. Airline fees for selecting seats have become increasingly expensive and pervasive, often requiring parents traveling with children to pay extra to sit together.
This report comes amidst the Biden Administration’s efforts to enhance consumer protections in the airline industry. The Department of Transportation recently announced it would enforce a new rule mandating automatic refunds for passengers in the event of canceled or significantly delayed flights. The report also examined tactics employed by airlines to ensure that passengers pay for carry-on baggage, revealing that budget airlines Frontier and Spirit spent $26 million in incentives to reward agents for identifying passengers who were not adhering to baggage policies, sometimes leading to forced baggage fees.
One official from Frontier mentioned that agents can earn up to $10 for every bag a passenger is compelled to check at the gate, justifying such practices as necessary to prevent theft of airline services. Frontier Airlines defended its policy of charging unbundled fees as a method to make air travel more affordable and accessible. They emphasized that their business model has democratized air travel, allowing a broader segment of the population to fly.
In contrast, the report hinted at inequities in how airlines classify their fees concerning federal taxes, suggesting that some airlines label certain charges as ‘non-taxable fees,’ thus putting competitors at a disadvantage. Airlines for America, a lobby group, claimed compliance with all regulations regarding taxes and fees.
As the administration continues to scrutinize ‘junk fees’, there are proposed rules aimed at eliminating seat-selection fees for families wanting to sit together. Transportation Secretary Pete Buttigieg remarked on the bipartisan support for passenger protections. Furthermore, the Senate subcommittee plans to conduct a hearing with representatives from American, Delta, United, Frontier, and Spirit airlines in the coming week, signaling an ongoing investigation into these practices.
