The Senate report criticizes airlines for raking in billions in seat fees

A Senate subcommittee on Tuesday blasted large and small US airlines over fees for choosing seats on planes.

Between 2018 and 2023 American, Participate, UnitedSpirit and Limit brought in $12.4 billion in seat fees, including for seats with extra legroom as well as those in “preferred” locations closer to the front of the plane, or window or aisle seats, the Senate Permanent Subcommittee on Investigations report said.

Last year, United’s revenue from seat fees totaled $1.3 billion, the first time since at least 2018 that the category surpassed revenue from checked baggage fees, the report said.

While most major US airlines have gotten rid of ticket change fees for standard economy tickets, they have added fees for choosing more popular or more spacious seats on board. Airlines have also been racing to add more premium seats on board to boost revenue.

Stamping out so-called junk fees has been a priority for the Biden administration. Late. Richard Blumenthal, D-Conn., the subcommittee chairman, said airline executives have been subpoenaed to testify about the practices at a Dec. 4 hearing called “The Sky’s the Limit – New Revelations About Airline Fees.”

Airlines for America, a trade group representing the largest US carriers, said air travel has become more affordable and customers can choose what they want to pay for on board.

“The report demonstrates a clear failure on the part of the subcommittee to understand the value the highly competitive U.S. airline industry brings to customers and employees. Rather, the report serves as yet another talking point for vacation travel,” the group said.

The report also criticized low-cost airlines Spirit and Frontier, saying they paid gate agents $26 million between 2022 and 2023 to “catch passengers who allegedly do not follow airline policies, often forcing those passengers to pay a baggage fee or miss their flight .”

Spirit said in a statement that it is “transparent about our products and pricing, our airport policies ensure that guests are treated fairly and equally, and we comply with all tax laws and regulations.”

Frontier said the gate agent commissions are “simply designed to incentivize our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly, including the majority who comply.”