U.S. Airlines Raked in $12.4 Billion in Seat Fees, Senate Report Reveals

A Senate subcommittee issued a harsh critique on Tuesday of U.S. airlines, both major and budget carriers, over their growing reliance on fees for seat selection. Between 2018 and 2023, American, Delta, United, Spirit, and Frontier airlines generated $12.4 billion in seat selection fees, according to a report from the Senate Permanent Subcommittee on Investigations. These fees included charges for extra-legroom seats, “preferred” locations closer to the front of the plane, as well as window or aisle seats.

United Airlines alone generated $1.3 billion from seat fees in 2023, surpassing the airline’s revenue from checked bag fees for the first time since at least 2018. While many major U.S. airlines have eliminated fees for changing standard economy tickets, they have introduced new charges for selecting premium or more spacious seats, with some even increasing the number of premium seats to boost earnings.

The issue of “junk fees,” including seat selection charges, has been a key focus of the Biden administration. Sen. Richard Blumenthal (D-Conn.), the subcommittee’s chair, criticized the practice, announcing that airline executives would testify about the issue at a December 4 hearing titled “The Sky’s the Limit—New Revelations About Airline Fees.”

Airlines for America, a trade group representing the largest U.S. carriers, defended the industry, arguing that air travel has become more affordable and that passengers have the option to choose what they want to pay for when booking a flight. The group further criticized the subcommittee’s report, claiming it misrepresented the value of the competitive U.S. airline industry.

The report also took aim at budget airlines Spirit and Frontier for their practices concerning baggage fees. Spirit and Frontier reportedly paid gate agents $26 million between 2022 and 2023 to “catch passengers” who allegedly did not follow baggage policies, often leading to additional fees or missed flights. Spirit defended its practices, saying it is transparent with pricing, treats passengers fairly, and complies with all regulations. Frontier explained that the incentive for gate agents was meant to ensure passengers complied with bag size requirements, ensuring equal treatment for all customers.

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Alton Walker

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