Sky-High Prices: Senate Investigates Airline Fee Practices

A U.S. Senate panel, led by Senator Richard Blumenthal, is scrutinizing the increase in airline fees for seats and luggage. Five major airlines reportedly earned $12.4 billion from seat fees between 2018 and 2023, prompting further investigation into fee structures and potential tax avoidance.

The rising costs of flying have come under sharp scrutiny as a U.S. Senate panel criticized escalating airline fees for seat assignments and luggage just ahead of a hearing set for December 4. The session will see top executives from major carriers like American, United, Delta, Spirit, and Frontier testifying before the panel.

Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, unveiled a report indicating that these airlines have collectively raked in $12.4 billion in seat-related fees over five years. United Airlines, for instance, saw revenue from seat fees surpass that of checked bags last year, raising questions about the fairness and transparency of these charges.

The investigation also revealed that airlines may be leveraging customer data through algorithms to set targeted fees, while some carriers could be skirting federal excise taxes by mislabeling charges as non-taxable. Frontier and Spirit Airlines reportedly compensated staff for identifying passengers dodging bag charges, incentivizing practices that some see as controversial.

(With inputs from agencies.)