Senate probes airline industry's fee-based model.
First Class seats on United’s Airbus A321neo (Photo: AirlineGeeks | Andrew Chen)
The practice of charging extra fees for seat selection is under intense scrutiny in the U.S. Senate, with lawmakers raising concerns about fairness and transparency in the airline industry. Executives from major U.S. airlines appeared before a Senate subcommittee on Wednesday to defend their fee structures after a report revealed the industry had earned billions from these charges over the past five years.
The investigation comes amid growing calls from lawmakers and the Biden administration to crack down on what are commonly referred to as “junk” fees. These charges, which airlines introduced over time to supplement base fares, often include seat selection, checked luggage, and other amenities that were once included with the ticket price.
The Senate Permanent Subcommittee on Investigations released a report last month that revealed American, Delta, United, Spirit, and Frontier generated $12.4 billion in seating fees from 2018 to 2023. These additional charges apply to premium seating options, such as those with extra legroom or closer to the front of the aircraft.
Senator Richard Blumenthal, D-Conn., chair of the subcommittee, criticized the industry for its fee practices. “Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime,” Blumenthal said in his opening remarks.
In response, airline executives defended the practice, asserting that the fees offer passengers the flexibility to choose the services that suit their preferences. “Our seat selection products are all voluntary,” said Stephen Johnson, chief strategy officer at American Airlines. “For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats.”
United Airlines, which earned $1.3 billion in seating fees last year, defended its model as a way to offer affordable options to customers. “In our view, a one-size-fits-all travel model would deny lower cost options to our customers,” said United’s chief commercial officer Andrew Nocella.
While airline executives argue that these fees are voluntary and clearly communicated, consumer advocacy groups contend that the complexity of the charges makes it difficult for passengers to fully understand the total cost of their tickets. Many travelers report being surprised by additional fees that appear during the booking process, which advocates say can result in deceptive pricing.
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