Spirit Airlines, Delta: Airlines Make Billions From Charging ‘Junk Fees,’ Congressional Report Says

CNN
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Airlines have pocketed billions of dollars in so-called “junk fees” by charging customers extra to select a seat or to carry bags, according to a Senate subcommittee report released Tuesday.

The report said some airlines have even paid workers cash incentives to identify customers trying to avoid carry-on fees.

From 2018 to 2023, five US airlines earned more than $12 billion from seat selection fees alone, an “unbundled” cost that used to be included as part of an airline ticket.

The report by the Senate Permanent Subcommittee on Investigations said that in 2023, United Airlines charged as much as $319 for an extra legroom seat, Spirit Airlines charged as much as $299, Delta Air Lines charged as much as $264, Frontier Airlines charged $141. and American Airlines charged as much as $140.

“Site fees have become more expensive and far-reaching,” it said. “These five airlines charge passengers extra for extra legroom, aisle and window seats, or even pre-selecting a seat, forcing parents with smaller children to pay to sit together.”

The 55-page report comes as the outgoing Biden administration takes a victory lap for their crackdown on airlines by increasing consumer protections. Earlier this month, the Department of Transportation announced it would begin enforcing a new rule requiring airlines to provide automatic refunds to passengers for canceled or significantly delayed flights.

The report detailed measures some airlines took to ensure passengers pay for carry-on bags. It stated that ultra-low-cost carriers Frontier and Spirit paid $26 million in incentives to spur agents in 2022 and 2023 “to catch passengers who allegedly did not follow airline policies, often forcing those passengers to pay a baggage fee or miss their flight.”

“Border personnel can earn as much as $10 for every bag a passenger is forced to check at the gate,” the report said. “A Frontier official told the subcommittee that enforcing the bag policy was necessary because the airline does not want customers to take more or ‘steal’ from the airline.”

Frontier acknowledged the practice in a statement to CNN. “The gate agent commission is simply designed to encourage our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly, including the majority who comply,” the statement said.

Spirit Airlines did not immediately respond to a request for comment.

The report also said some airlines appeared to avoid federal taxes by labeling some charges as “nontaxable charges,” putting airlines like Delta and American that don’t use that practice at a disadvantage.

Industry lobby group Airlines for America told CNN in a statement that its “members comply with all laws and regulations, including those on taxes and fees.”

Frontier defended unbundled fees as a way to make air travel more affordable.

“Frontier works every day to increase consumer access to affordable air travel and to ensure it provides the best possible value for its customers. Our unbundled services model has democratized air travel, enabling millions of individuals, families and small businesses who otherwise would not or could not afford to travel by air,” the statement said.

Airlines for America’s statement echoed that sentiment. “The subcommittee clearly lacks appreciation of the fact that air travel today is democratized, allowing Americans across all income levels to fly. Today, because of the revolution in air travel, nearly ninety percent of Americans have flown. That’s because Americans have the ability to choose to pay for the services they want and forgo those they don’t.”

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

“Junk fees” have been in the threads of the Biden administration. In August, the Department of Transportation proposed rules that would eliminate seat selection fees for families who want to sit together.

“I know some airline CEOs have expressed the hope that the next administration will be less passenger-friendly and more business-friendly than this administration,” Transportation Secretary Pete Buttigieg said at a news conference last week. “The passenger protections we have put in place deserve broad public, bipartisan support.”

The Senate Permanent Subcommittee on Investigations says it will hold a hearing with officials from American, Delta, United, Frontier and Spirit next week.