Senate Panel Targets Airline 'Junk Fees'

The U.S. Senate Permanent Subcommittee on Investigations, chaired by Senator Richard Blumenthal, has criticized major airlines for charging excessive 'junk fees' for seat assignments and luggage, with hearings scheduled for December 4. Between 2018 and 2023, airlines like American, Delta, United, Spirit, and Frontier collectively earned $12.4 billion from seat fees alone. The subcommittee's investigation revealed that airlines use algorithms to set variable fees and may avoid federal taxes by labeling charges as nontaxable. Ultra-low-cost carriers like Frontier and Spirit incentivize gate agents to enforce bag fees, leading to additional charges for passengers. The subcommittee urges greater transparency in airline fee disclosures, aligning with a Biden Administration bill aiming to make fee structures clearer. Airlines contend that fees are optional and necessary for offering competitive pricing and improved services.