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Top airline executives in the United States are gearing up to defend their controversial seat surcharges before a Senate subcommittee this coming Wednesday. The panel has accused the airline industry of imposing what they refer to as “junk” fees in order to rake in billions of dollars in revenue.
A recent report from the Senate Permanent Subcommittee on Investigations, which was released on November 26, revealed that major airlines such as American, Delta, United, Spirit, and Frontier collectively earned a staggering $12.4 billion in seating fees between the years 2018 and 2023.
The investigation brought to light the fact that passengers who opt for seats with additional legroom, seats located towards the front of the aircraft, or window/aisle seats are often charged a premium.
In a written statement submitted to the inquiry, Stephen Johnson, the chief strategy officer of American Airlines, defended their seat selection fees by stating, “Our seat selection products are all voluntary. We offer customers the opportunity to pay for seats if they value sitting in more desirable locations.”
The Biden administration, along with several politicians, have been vocal about their intentions to crack down on these so-called “junk” fees, particularly within the aviation industry.
Major airline executives, however, argue that they are simply responding to market demand by offering different levels of economy service and implementing add-on charges for services that were once complimentary, such as seat selection and checked luggage.
These airlines are actively working to introduce premium seating options in order to boost their overall revenue. Johnson emphasized that the cost of acquiring a seat in a different fare class or with extra legroom is clearly communicated to passengers, along with information regarding potential additional fees for checked bags and other services.
Spirit and Frontier, two airlines that were among the pioneers of the fee-based model in the U.S., have played a significant role in prompting competitors to introduce basic economy class fares. However, despite their success in this area, Spirit Airlines found itself facing financial challenges in recent months due to a variety of factors, including failed acquisition attempts, engine issues, increased competition, and evolving passenger preferences. In November, Spirit Airlines filed for Chapter 11 bankruptcy.
Executives from Delta, United, Frontier, and Spirit are scheduled to appear before the Senate subcommittee at the upcoming 10 a.m. Eastern Time session, where they will have the opportunity to defend their seat surcharges and address concerns raised by lawmakers.
