U.S. airline executives defended their seating fees before a Senate panel on Dec. 4, following accusations by the subcommittee that the industry charged so-called “junk” fees to generate billions in revenue.
“Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime,” Sen. Richard Blumenthal, the subcommittee’s chair, stated in his written remarks before the hearing.
The report highlighted that these additional charges were for seats with extra legroom or in “preferred” locations closer to the front of the plane and for window or aisle seats.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s Chief Strategy Officer, asserted in his written testimony for the hearing. “For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats.”
Between 2018 and 2023, American, Delta, United, Spirit and Frontier collected $12.4 billion in seating fees, according to a report released on Nov. 26 by the Senate Permanent Subcommittee on Investigations.
Executives from major airlines defended their strategy of offering various types of economy services paired with add-on fees for seat selection or checked baggage. This practice, referred to as “unbundling,” involved charging separately for goods and services previously included in a ticket’s price. They also claimed these options were communicated to customers.
The report also shed light on the rise of baggage fees and passengers’ attempts to circumvent them. Frontier and Spirit reportedly paid $26 million to gate agents and other personnel between 2022 and 2023 to catch passengers allegedly violating bag policies, often forcing those passengers to pay fees or miss their flights. Frontier employees could earn as much as $10 for each bag a passenger was required to check at the gate.
Budget carriers like Spirit and Frontier pioneered the fee-based model in the U.S. and were credited with prompting larger competitors to introduce basic economy classes with minimal inclusions. However, Spirit faced challenges, including a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition and evolving consumer preferences—ultimately leading the airline to file for Chapter 11 bankruptcy protection in November.
The Biden administration and some lawmakers pledged to crack down on junk fees, identifying the airline industry as a key area for reform.
