ination guides, and the latest travel industry updates.">
Wednesday, December 4, 2024
HomeTravelCongressional Report On US Airline Junk Fees Sparks Debate Ahead Of Thanksgiving...

Congressional Report On US Airline Junk Fees Sparks Debate Ahead Of Thanksgiving Holiday Travel

As US airports and airlines get busy carrying passengers during the holiday rush, a Senate subcommittee has released a report that says major US airlines are charging passengers significantly, which they termed “junk fees.”
Some airline representatives, however, have responded that these fee structures have actually made air travel affordable for the masses. To discuss this issue, a Senate hearing has been scheduled in December for senior executives of five major US airlines.
Key findings
A report by a Senate subcommittee has said that major airlines in the US are charging customers significantly in “junk fees.” The findings were released by Senator Richard Blumenthal, Chair of the US Senate Permanent Subcommittee on Investigations (PSI).
The investigation sought information from three major airlines— American Airlines, Delta Air Lines, and United Airlines, as well as two “ultra-low-cost” carriers— Frontier Airlines and Spirit Airlines. Blumenthal said that airlines are exploiting passengers with these additional fees and have called their representatives to testify before the PSI. So, what exactly has the report found?
Photo: Leonard Zhukovsky | Shutterstock
Bag policy enforcement
The report says that much of the fee structures now used throughout the industry, such as unbundled fares and separate charges for goods and services, have been pioneered by carriers like Spirit and Frontier.
The report noted that Frontier and Spirit incentivize their gate agents to enforce baggage policy and shelled out $26 million between 2022 and 2023 for this. It notes that “Frontier personnel can earn as much as $10 for each bag a passenger is forced to check at the gate.”
Seat fees make a lot of money for airlines
The report states that American, Delta, United, Frontier, and Spirit collectively earned $12.4 billion between 2018 and 2023 in seat fees alone. The report cites the following examples to highlight this point:
“United charged as much as $319 for an extra legroom seat in 2023. The same year, Spirit charged as much as $299 per extra legroom seat while American charged up to $140, Frontier charged up to $141, and, in 2024, Delta charged up to $264.99. Spirit charged as much as $899 for its Big Front Seats in 2023.”
Photo: Markus Mainka | Shutterstock
Using algorithm to set fees
According to the findings, airlines are now relying heavily on algorithms to set fees based on customer information. Frontier and Spirit use “dynamic” pricing to set their fees for carry-on bags and checked bags, which likely results in different passengers paying different prices for their luggage.
Get all the latest aviation news right here on Simple Flying.
Several other issues have been highlighted in the report, such as how ancillary fees are unconnected to the actual cost of providing the services they cover. The full report can be found here.
Photo: Austin Deppe| Shutterstock
Response to the report
Airlines for America, which represents major US carriers, criticized the report saying that it failed to understand the value that this sector brings to employees and passengers. It dismissed it as “just another holiday travel talking point.”
Spirit Airlines said in a statement:
“We are transparent about our products and pricing, our airport policies ensure guests are treated fairly and equally, and we comply with all tax laws and regulations. We respectfully disagree with numerous statements and conclusions contained in the report.”
Photo: Robin Guess | Shutterstock
In response to the incentivization of gate agents, Frontier responded:
“The commission for gate agents is simply designed to incentivize our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly, including the majority who comply with the rules.”
PSI hearing on December 4
To discuss this issue further, the following airline executives have been called for a Senate hearing on December 4:

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments

Translate »
×