A Senate investigation found that US airlines have raked in billions in extra charges, such as seat selection fees and add-ons to carry-on luggage.
In particular, seat selection fees collected over $12 billion among five major airlines between 2018 and 2023 in this practice, charging passengers for the option to have more legroom or even to sit with family. These charges, which were included in the ticket price, have increased by leaps and bounds, making travelers incur extra costs for basic travel needs.
However, some airlines have taken the fees pretty far. CNN shared that ultra-low-cost carriers Frontier and Spirit Airlines rewarded staff with millions of dollars in bonuses for catching passengers trying to avoid carry-on bag fees. It could pay $10 for each oversized bag a passenger was made to check-in. Airlines have supported the practice as being one of fairness, which prevents all rule breakers and ensures that everyone is treated the same way.
Biden Administration's New Airlines Mandate
Following these revelations, the Biden administration will hit airlines with new regulations mandating that airlines automatically rebook passengers or compensate them with an automatic refund for canceled or substantially delayed flights. These regulations are in place to safeguard the consumer against high-ticket charges and lousy service.
Earlier this year, the Transportation Department also announced plans to prohibit fees associated with seat selection for families that wish to sit together, according to NPR.
In their defense, airlines claim that unbundled fees allow for lower base ticket prices thus democratizing air travel and opening its doors wider to more people. Frontier Airlines said their pricing model makes it possible for millions of people who wouldn't normally afford traditional tickets to fly. But critics argue that portraying some fees as "non-taxable" puts a particular airline at a financial advantage but leaves consumers with surprise charges.
The Senate Subcommittee on Investigations has scheduled an oversight hearing with representatives from the major airlines, including American, Delta, United, Frontier, and Spirit, to address these concerns.
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