In a significant development on Monday, a U.S. Senate panel launched an investigation into the myriad fees imposed by airlines, encompassing charges for baggage, seat selection, ticket modifications, and various services. Led by Democratic Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, the inquiry seeks to unveil the rationale behind these fees from the CEOs of five major carriers—American Airlines, United Airlines, Delta Air Lines, Spirit Airlines, and Frontier Airlines—emphasizing their significant impact on annual revenue.
Senator Blumenthal voiced concerns about the lack of transparency and the complexity surrounding these fees, stressing that consumers often encounter them in an obscured manner. He has corresponded with airline executives, urging them to provide detailed breakdowns of the amounts collected from each fee, the justification for their imposition, and the costs associated with delivering each service.
The reported increase in total revenue from baggage fees for major U.S. airlines, from $4.9 billion to $6.8 billion between 2018 and 2022, has drawn attention. Blumenthal also cited a travel consultancy report indicating that eight leading U.S. airlines amassed an estimated $4.2 billion in fees for seat selection in the preceding year.
Blumenthal highlighted the trend of U.S. airlines adopting ancillary fees that obscure the genuine cost of air travel, pointing out that these itemized fees often remain undisclosed to customers until well into the ticket purchasing process.
While American, Delta, and United redirected inquiries about the Senate investigation to Airlines for America, an industry trade group, responses from Spirit and Frontier are still awaited.
It is notable that airline CEOs effectively opposed bipartisan legislation in 2018, resisting mandates for "reasonable and proportional" baggage and change fees. The U.S. Transportation Department proposed regulations in 2021 and 2022 to enhance fee transparency and mandate refunds for delayed bags and malfunctioning onboard services, with finalization anticipated in early 2024.
Meanwhile, comprehensive aviation legislation in Congress faces a standstill, encompassing provisions aimed at preventing airlines from segregating families with young children in most seating arrangements.