Airlines make billions charging ‘junk fees,' congressional report says
Airlines Pocket Billions Through Additional Fees #
Airlines have accumulated billions by imposing extra charges on customers for seat selection and carry-on bags. From 2018 to 2023, five major US airlines earned over $12 billion from seat selection fees, a cost that was once included in ticket prices. In 2023, fees varied significantly, with United Airlines charging up to $319 for extra legroom seats, while Spirit Airlines charged as much as $299. Seat fees have grown more expensive and farther-reaching, with additional charges for legroom, aisle and window seats, and even for selecting a seat in advance. Many parents feel compelled to pay these fees to sit with their children.
In recent years, incentives have been offered to airline staff to identify non-paying passengers for carry-on bags. Ultra-low-cost carriers paid $26 million to encourage agents to enforce bag policies, often forcing last-minute payments or leading to missed flights. Frontier staff, for instance, could earn $10 for each gate-checked bag, enforcing the policy to ensure fairness among passengers who comply with the rules.
There is concern that some airlines may be evading federal taxes by classifying certain charges as ’non-taxable fees,’ which could disadvantage airlines not using such practices. Unbundled fees, according to some airlines, aim to make air travel more affordable by allowing consumers to choose services they want and avoid unnecessary costs. This model has allowed people across different income levels to access air travel.
Amid growing scrutiny, the Biden administration has focused on eliminating ‘junk fees,’ proposing rules to eradicate seat-selection fees for families wishing to sit together. This consumer protection drive comes in response to widespread public demand. A Senate hearing with officials from major airlines is scheduled to address these practices.