Airlines are raking in billions of dollars in “junk-fees,” according to a new report. The report from the Senate Permanent Subcommittee on Investigations centers on extra charges people pay when they fly, like checking bags or choosing their seat.
It found from 2018 to 2023, five U.S. airlines made more than $12 billion on seat selection fees alone.
The report said for an extra legroom seat, United Airlines charged as much as $319, Spirit Airlines charged up to $299, Delta Airlines charged as much as $264, Frontier Airlines charged as much as $141 and American Airlines charged as much as $140.
Lawmakers reported some of the fees are set up to avoid taxes.
Federal law applies a 7.5% tax to passenger air transportation, with some airlines calling certain services “optional” to bypass the tax on those charges. The ambiguity encourages airlines to charge more in non-taxable fees.
Some are maximizing this strategy to gain an advantage in attracting budget-conscious customers.
The report also found some airlines, like Frontier and Spirit, reward agents for catching travelers who do not follow carry-on rules.
Earlier this month, the Biden administration started ramping up consumer protections.
The Department of Transportation proposed to ban family seating junk fees. The proposal would guarantee parents can sit with their kids for no extra charge.
This led to at least four airlines offering fee-free family seating.
Last week, Transportation Secretary Pete Buttigieg responded to criticism from airline executives who say they’re being over-regulated.
“I know that some airline CEOs have expressed hopes that the next administration will be less passenger-friendly and more corporate-friendly than this administration,” Buttigieg said. “What I will say is the passenger protections that we have put in place deservedly enjoy broad public, bipartisan support.”
It’s unclear exactly what incoming President-elect Donald Trump’s plans are for the airline industry.
The Senate subcommittee will hold a hearing next week, giving airline officials a chance to respond.
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Author: Lauren Taylor
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