In 5 Years, Airlines Made $12.4 Billion From Seating Fees Alone. Senate And Biden Admin Say These 'Junk Fees' Must Stop

A new Senate report has shed light on just how much money airlines are making off add-ons like seat and baggage fees. And it’s a lot: $12.4 billion from seat selection fees alone between 2018 and 2023. And now, lawmakers and the Biden administration are saying enough is enough.

Sen. Richard Blumenthal, who chairs the Senate’s Permanent Subcommittee on Investigations, recently revealed the findings. Blumenthal said that airlines have been exploiting passengers with what he calls “junk fees,” like extra charges for picking your seat – whether it's just for a standard aisle or window spot or the more spacious, extra legroom seats. 

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These fees have become a huge source of income for big airlines like American, Delta, United, Frontier and Spirit, bringing in billions. At the same time, passengers deal with higher prices and a more confusing booking experience.

Seat fees increased substantially over the five years. Per the report, Frontier Airlines, for example, raised the price of its most expensive extra legroom seat from $50 in 2018 to $141 in 2023. Spirit Airlines similarly escalated its maximum seat fee for extra legroom from $71 in 2018 to $299 in 2023. Spirit’s Big Front Seats, the airline’s most premium seating option, saw an even bigger rise, going from $140 to $899 over the same time frame.

Blumenthal argues that these charges aren't tied to any real cost to the airline. The report found that the airlines couldn't clearly show what it costs them to offer seat assignments. This suggests that the prices aren’t based on the service provided but are another way to bump up revenues. And if you’ve ever booked a flight and faced charges just to make sure you sit next to your kid, you know how frustrating it can be.

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The Biden administration also addresses these fees, which they see as unfair burdens on travelers. As part of his larger campaign against “junk fees” in various sectors, including banks, hotels and other services that tack on additional fees, President Biden has spoken out against these charges. Families shouldn’t have to pay more just to sit together, so the administration wants to make flying easier.

The Senate’s investigation also highlighted other questionable practices. For example, airlines like Frontier and Spirit have been paying gate agents to enforce baggage rules strictly, leading to passengers being charged extra for their bags and sometimes even missing flights because of it. Between 2022 and 2023 alone, these gate agents received around $26 million in commissions for catching passengers out on baggage size, according to the Majority Report.

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Airline executives from the major carriers are set to testify at a Senate hearing on Dec. 4 to answer for these practices. The hearing, “The Sky’s the Limit – New Revelations About Airline Fees,” is anticipated to probe the reasons behind the exorbitant prices and whether there is any real basis for them.

The airlines, of course, have defended their actions. As CNBC reports, Airlines for America, a trade group representing the biggest U.S. carriers, pushed back, saying that the Senate report doesn't “understand the value the highly competitive U.S. airline industry brings to customers and employees.” They also claim that today’s more competitive pricing structure makes flying more affordable. However, critics point out that the complexity and rising costs of add-ons like seat fees often make trips more expensive than they initially appear when you first see the ticket price.

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