Airlines Have Earned Billions From Junk Fees, US Senate Says

Airlines Junk Fees
Spirit Airlines A320-232, N644NK, as NK 326 LAX-IAH. Credit: Charles – CC BY-NC-SA 2.0 via Flickr.

A report released by a US Senate subcommittee on Tuesday, November 26th revealed that airlines have raked in billions of dollars through so-called “junk fees.”

These charges include additional costs for choosing a seat or bringing carry-on luggage. The findings also highlighted that some airlines even incentivize employees to spot passengers attempting to bypass fees for extra carry-ons.

According to the congressional investigation, five major US airlines earned over $12 billion from seat selection fees, which have not been included in base ticket prices in recent years.

The report shows that junk fees have become extremely profitable for airlines

The congressional report showed what the cost for extra leg space was in some of the largest airlines of the US. It was revealed that in 2023, United Airlines charged $319 for extra legroom on a flight, with Spirit and Delta charging as much as $299 and $264, respectively. Other airlines such as Frontier and American charged $141 and $140, respectively.

The report said that junk fees, such as seat selections, have “grown more expensive and farther-reaching,” adding that “these five airlines charge passengers extra for additional legroom, aisle, and window seats, or even selecting a seat in advance, compelling parents with minor children to pay to sit together.”

Additionally, the report revealed how airlines ensured passengers pay for their junk fees. It revealed that ultra-low-cost airlines such as Spirit and Frontier allocated $26 million in incentives between 2022 and 2023 for employees encouraging customers to pay for these fees.

According to the report, one of the most common practices was catching passengers not following airline bag policies, which would then force the passenger to pay the extra baggage fee or miss the flight. For instance, the report revealed that frontier employees can earn $10 for each bag a passenger is forced to check at the gate prior to a flight.

Frontier has admitted they engage in the practice, saying in a statement to CNN that “the commission for gate agents is 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 with the rules.”

Some airlines may be actively evading taxes

The congressional report also revealed that some airlines may be avoiding federal tax by labeling some of their junk fees as non-taxable fees. This practice has effectively put airlines that do not engage in this practice at a disadvantage.

Still, Frontier has publicly defended itself after this report was released, saying that their junk fees are meant to make flying more affordable for passengers.

In a statement, the airline said:

“Frontier works every day to increase consumers’ access to affordable air travel and to ensure that it provides the best possible value to its customers. Our unbundled services (junk fees) model has democratized air travel, enabling millions of individuals, families, and small businesses who otherwise would not or could not afford to travel the opportunity to travel by air.”

This sentiment has been echoed by Airlines of America, which is a lobbying group, and by Spirit Airlines, which, in a statement of their own, said they are transparent with their fees and comply with all tax and regulations.

Airlines and their junk fees have been under close watch, with the Department of Transportation proposing rules to eliminate fees for families that want to sit together on a flight.

It remains to be seen whether bipartisan support will continue for passenger-friendly legislation under the upcoming administration, but, at the moment, the Senate Permanent Subcommittee will hold hearings on junk fee-related issues with airline officials next week. 

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