Senate grills US airline executives over fees for seats, checked bags

WASHINGTON, D.C.: On December 4, senators asked U.S. airline executives tough questions about the growing array of fees charged for early boarding, preferred seats, and checked bags.

The hearing, held by the Senate Permanent Subcommittee on Investigations, focused on concerns about transparency and fairness in pricing practices.

Sen. Richard Blumenthal, D-Conn., referred to the fees as "junk fees" and suggested that the federal government should investigate and potentially penalize airlines for practices he described as exploitative.

"Seat fees are pure profit," Blumenthal said, noting that airlines do not incur additional costs for allowing passengers to select seats.

Some senators expressed frustration over the lack of clarity on how fees are set. "We're all captives on your airplanes at a certain point," said Sen. Maggie Hassan, D-N.H., calling for greater transparency.

Despite criticism, airlines argue the fees provide customers with choices. "Our customers who prioritize affordability have the option to choose a lower-fare product and opt out of paying for additional services," said Andrew Nocella, chief commercial officer of United Airlines.

He acknowledged that fees should not surprise passengers and emphasized the need for clear communication during ticket purchases.

The issue of employee bonuses tied to fee enforcement also drew criticism. Sen. Josh Hawley, R-Mo., took aim at Frontier and Spirit Airlines for paying employees US$26 million in bonuses for identifying oversized carry-on bags. "Your airlines are paying millions of dollars to your employees to harass people who have already paid!" he said.

Airlines raised over $7 billion from checked bag fees in 2023, with American Airlines and United Airlines leading the way. They also earned more than $1 billion in ticket-change and cancellation fees, though this is significantly less than pre-pandemic levels. Between 2018 and 2023, five major airlines collected over $12 billion from seat fees alone, according to the Senate panel.

The Biden administration has frequently criticized these fees. A Transportation Department rule now requires automatic refunds for canceled flights, but efforts to require more transparent disclosures of baggage and cancellation fees face legal challenges.