Senate report slams airlines for raking in billions in seat fees

Senate report slams airlines for raking in billions in seat fees


A Delta Air Lines cabin.

Leslie Josephs/CNBC

A Senate subcommittee on Tuesday slammed U.S. airlines large and small over fees to pick seats on flights.

Between 2018 and 2023 American, Delta, United, Spirit and Frontier brought in $12.4 billion in seating fees, including for seats with extra legroom as well as those in “preferred” locations that are closer to the front of the plane, or window or aisle seats, said the report from the Senate Permanent Subcommittee on Investigations.

While most major U.S. airlines have gotten rid of ticket-change fees for standard economy tickets, they have added fees to select more popular or roomier seats on board. Carriers have also been racing to add more premium seats on board to increase revenue.

Why airlines are investing millions on bigger and fancier seats

Stamping out so-called junk fees has been a priority for the Biden administration. Sen. Richard Blumenthal, D-Conn., the subcommittee’s chair, said airline executives have been called to testify about the practice at a Dec. 4 hearing called “The Sky’s the Limit—New Revelations About Airline Fees.”

Airlines for America, a trade group that represents the largest U.S. carriers, said air travel has become more affordable and that customers can choose what they want to pay for onboard.

Read more CNBC airline news

“The report demonstrates a clear failure by the subcommittee to understand the value the highly competitive U.S. airline industry brings to customers and employees. Rather, the report serves as just another holiday travel talking point,” the group said.

The report also criticized budget airlines Spirit and Frontier, saying they paid gate agents $26 million between 2022 and 2023 to “catch passengers allegedly not following airline bag policies, often forcing those passengers to pay a bag fee or miss their flight.”

Spirit said in a statement that is “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.”

Frontier didn’t immediately comment.



Source

59% of Americans consider this the No. 1 sign of success — it’s not wealth
Travel

59% of Americans consider this the No. 1 sign of success — it’s not wealth

Pt Stock | Moment | Getty Images When Americans measure success, they’re not often thinking about their net worth or account balances. About 59% of polled Americans say that happiness — specifically, the ability to spend money on things that make them happy — is the most important benchmark of success, according to a new […]

Read More
Heathrow boss says 2025 to bring final decision on controversial third runway
Travel

Heathrow boss says 2025 to bring final decision on controversial third runway

A general view of aircraft at Heathrow Airport in front of the London skyline on October 11, 2016 in London, England.  Jack Taylor | Getty Images News | Getty Images LONDON — Heathrow’s chief executive said Monday he would push the U.K. government for a final decision on construction of a third runway at the […]

Read More
Holiday travelers pivot to Europe as their destination of choice
Travel

Holiday travelers pivot to Europe as their destination of choice

CNBC’s Phil LeBeau report on the latest holiday travel trends. Source

Read More