Senate Targets Airlines Over $12.4 Billion Seat Fees Amid Mounting Scrutiny

A scathing Senate report released on Tuesday has criticized major U.S. airlines for profiting billions from seat selection fees, raising questions about transparency and consumer fairness.

The Permanent Subcommittee on Investigations revealed that from 2018 to 2023, carriers like American Airlines AAL, Delta Air Lines DAL, and United Airlines UAL generated $12.4 billion in fees for seat upgrades and preferred placements, CNBC reports.

As travelers face rising costs for options like extra legroom or aisle seats, the report highlighted how these fees, initially marketed as optional, have become a significant revenue stream. CNBC reports that United alone earned $1.3 billion from seating fees last year—outpacing its checked bag-fee revenue for the first time.

Budget carriers like Spirit Airlines SAVEQ and Frontier Airlines also came under fire. They incentivize gate agents to enforce bag size policies, sometimes at the expense of passenger experience.

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Airlines for America, the industry's trade group, defended the fees, stating the competitive landscape allows passengers to pay for what they value. However, consumer advocates argue these practices burden travelers while masking true ticket costs, according to CNBC.

Budget airlines have faced additional scrutiny. Spirit Airlines awarded its CEO a $3.8 million retention bonus just days before filing for Chapter 11 bankruptcy. This financial maneuver came as the company sought to restructure debt while continuing operations under bankruptcy protection.

Sen. Richard Blumenthal (D-CT), chair of the subcommittee, announced that airline executives will testify at a Dec. 4 hearing titled "The Sky's the Limit—New Revelations About Airline Fees."

The Biden administration passed various protections for airline consumers (i.e., automatic refunds after canceled flights).

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