A United Airlines aircraft ascends into the sky as another prepares for departure at Los Angeles International Airport on December 2, 2024, following the Thanksgiving holiday. This AFP file photo is used for illustrative purposes only.
The chairman of a US Senate subcommittee has strongly condemned the escalating fees charged by airlines for luggage and seat assignments, accusing carriers of seeking new methods to extract additional funds from passengers. Senator Richard Blumenthal, who leads the Permanent Subcommittee on Investigations, is organizing a hearing on Wednesday titled 'The Sky’s the Limit — New Revelations About Airline Fees,' with executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines, and Frontier Airlines set to testify.
'Airlines nowadays perceive their customers as nothing more than mobile piggy banks, to be exploited for every conceivable cent,' Blumenthal stated in his prepared remarks. A report released by Blumenthal last week revealed that the five airlines collectively generated $12.4 billion in revenue from seat fees between 2018 and 2023.
Blumenthal's subcommittee conducted a year-long investigation, discovering that carriers are increasingly employing algorithms to determine fees and that some airlines might be circumventing federal transportation excise taxes by categorizing certain charges as nontaxable fees. Carriers are developing customer-specific pricing strategies 'to discriminate against passengers and increase fares and fees for consumers whom the airline believes will pay more,' according to Blumenthal.
Airlines argue that these fees are transparent and necessary to offer consumers choices amid rising operational costs. American Airlines vice-chair Stephen Johnson will inform senators that legacy carriers must 'cater to the most cost-conscious customers... The fierce competition in the industry necessitates us to meticulously design our product offerings.' Delta executive Peter Carter, in written testimony, stated that the airline's objective is 'to provide options and value for every customer... Fee practices that undermine the trust and loyalty of our customers are not in our best interests.'
Blumenthal's committee discovered that budget carriers Frontier and Spirit paid $26 million to gate agents and other staff between 2022 and 2023 to identify passengers who had not paid for bag fees or were carrying oversized items. Frontier personnel can earn $10 for each bag passengers are required to check at the gate, according to the report. Frontier CEO Barry Biffle defended this practice, comparing it to shoplifting for passengers attempting to avoid payment.
Earlier this year, airlines filed lawsuits to challenge the US Transportation Department's new rule on upfront fee disclosure, while carriers in 2018 successfully lobbied against bipartisan legislation mandating 'reasonable and proportional' baggage and change fees.
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