U.S. airline executives are defending their seat fees before a Senate panel on Wednesday after the subcommittee accused the industry of charging “junk” fees to generate billions of dollars in revenue.
American, Delta, United, Spirit and Frontier collected $12.4 billion in seat fees between 2018 and 2023, in accordance with a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
“Airlines today view their customers as little more than walking piggy banks, being shaken off for every penny possible,” said Sen. Richard Blumenthal, D-Conn., the subcommittee chairman, in written remarks before the hearing.
These additional fees apply to seats with extra legroom, in addition to seats in “preferred” locations closer to the front of the plane, or window or aisle seats, the report said.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s chief strategy officer, said in written testimony before the hearing. “For customers who value sitting in more desirable locations, we offer the option to pay for more desirable seats.”
The Biden administration and a few lawmakers have vowed to crack down on so-called “junk” fees and have named the airline industry as a goal for cuts.
Major airline executives have defended their strategy of offering various kinds of economy services and extra fees for choosing specific seats or checked baggage, things that were once free with a ticket, saying those options will likely be communicated to customers.
According to the Senate panel report, United's revenue from seat fees totaled $1.3 billion last yr, the primary time since no less than 2018 that the category exceeded revenue from checked baggage fees.
“In our view, a one-size-fits-all travel model would deny our customers lower-cost options,” Andrew Nocella, United’s chief industrial officer, said in a written statement. “For example, our Basic Economy product is designed to promote affordability by allowing customers to choose the cheapest airfare and avoid paying for services they do not want to use.”
Nocella noted that United has modified its policy to not charge travelers flying with a baby under 12 for “preferred” seating.
Meanwhile, airlines are scrambling to bring more high-end seats on board to capitalize on rising demand for roomier — and dearer — seats.
“For example, fares that charge a fee to select a seat are clearly marked with an icon indicating that a seat in a different fare class or with more legroom must be purchased for a fee,” Johnson said. “Similar information is included for possible baggage and other fees.”
Discounters like Spirit and Frontier, which pioneered the fee-based model within the US, prompted competitors to launch their very own basic economy class. Spirit filed for Chapter 11 bankruptcy protection in November after a failed takeover by JetBlue Airways, a Pratt & Whitney engine recall, increasing competition and more demanding consumer demands.
The hearing, which began at 10 a.m., was also scheduled to incorporate testimony from executives from Delta, United, Frontier and Spirit.
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