Senate report slams airlines for raking in billions in seat fees

A Delta Air Strains cabin.

Leslie Josephs/CNBC

A Senate subcommittee on Tuesday slammed U.S. airways massive and small over charges to pick seats on flights.

Between 2018 and 2023 American, Delta, United, Spirit and Frontier introduced in $12.4 billion in seating charges, together with for seats with further legroom in addition to these in “most popular” areas which are nearer to the entrance of the airplane, or window or aisle seats, mentioned the report from the Senate Everlasting Subcommittee on Investigations.

Final yr, United’s income from seating charges totaled $1.3 billion, the primary time since not less than 2018 that class surpassed checked bag-fee income, the report mentioned.

Whereas most main U.S. airways have gotten rid of ticket change fees for normal economic system tickets, they’ve added charges to pick extra standard or roomier seats on board. Carriers have additionally been racing so as to add extra premium seats on board to extend income.

Why airlines are investing millions on bigger and fancier seats

Stamping out so-called junk charges has been a precedence for the Biden administration. Sen. Richard Blumenthal, D-Conn., the subcommittee’s chair, mentioned airline executives have been known as to testify in regards to the follow at a Dec. 4 listening to known as “The Sky is the Restrict—New Revelations About Airline Charges.”

Airways for America, a commerce group that represents the most important U.S. carriers, mentioned air journey has turn into extra inexpensive and that clients can select what they wish to pay for onboard.

Learn extra CNBC airline information

“The report demonstrates a transparent failure by the subcommittee to know the worth the extremely aggressive U.S. airline business brings to clients and workers. Reasonably, the report serves as simply one other vacation journey speaking level,” the group mentioned.

The report additionally criticized finances airways Spirit and Frontier, saying they paid gate brokers $26 million between 2022 and 2023 to “catch passengers allegedly not following airline bag insurance policies, usually forcing these passengers to pay a bag charge or miss their flight.”

Spirit mentioned in a press release that it’s “clear about our merchandise and pricing, our airport insurance policies guarantee Visitors are handled pretty and equally, and we adjust to all tax legal guidelines and laws.”

Frontier mentioned that the commissions for gate brokers are “merely designed to incentivize our staff members to make sure compliance with bag dimension necessities so that each one clients are handled equally and pretty, together with the bulk who adjust to the principles.”

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