A recent Senate subcommittee report has shed light on the lucrative practice of airlines charging customers additional fees for services that were once included in the price of a ticket. These so-called 'junk fees' have allowed airlines to amass billions of dollars in revenue, with some carriers resorting to cash incentives for employees to identify passengers attempting to avoid these fees.
According to the report, five major US airlines generated over $12 billion from seat selection fees alone between 2018 and 2023. The fees for selecting seats have become increasingly exorbitant, with some airlines charging as much as $319 for extra legroom seats.
The report highlighted the measures taken by airlines to enforce fees for carry-on bags, including incentivizing employees to ensure compliance with bag policies. Ultra-low-cost carriers Frontier and Spirit reportedly paid out millions in incentives to agents to catch passengers allegedly violating bag policies.
Furthermore, the report raised concerns about airlines potentially avoiding federal taxes by categorizing certain charges as 'non-taxable fees,' putting other carriers at a disadvantage.
In response to the report, industry lobby group Airlines for America emphasized that its members adhere to all laws and regulations, including those related to taxes and fees.
Frontier Airlines defended its unbundled fees as a means to make air travel more affordable, stating that their model has democratized air travel and expanded access to millions of travelers.
The Biden administration has been actively addressing these 'junk fees,' with the Department of Transportation proposing rules to eliminate seat-selection fees for families wanting to sit together.
Transportation Secretary Pete Buttigieg expressed support for passenger protections and emphasized the importance of maintaining a balance between consumer-friendly policies and corporate interests.
Looking ahead, the Senate Permanent Subcommittee on Investigations plans to convene a hearing with officials from major airlines to further address the issues raised in the report.
