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A US Senate task force is asking the executives of the five largest airlines to testify during a congressional hearing in December about their growing use of “dirty” money to increase revenue.
During the Dec. 4 hearing, titled “The Sky’s the Limit – New Revelations About Airline Fees,” top executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines and Frontier Airlines will appear before the Senate Permanent Subcommittee This investigation. (PSI).
Sen. Richard Blumenthal, D-Conn, chairman of the subcommittee, announced the hearing Tuesday just as the committee released the findings of the PSI Majority Report. The report revealed how major airlines have used related or unwanted fees to increase their revenue, which has increased costs for consumers, according to Blumenthal.
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In the report, the subcommittee said airlines have increasingly charged separately for goods and services that were once included in the ticket price over the past two decades. It’s a strategy known as “unbundling,” and the subcommittee said it “hasn’t reduced the cost of air travel for consumers, who now face additional costs to travel with carry-on or packed bags or sit next to their young children.”
For example, the report found that Frontier and Spirit paid $26 million to gate agents between 2022 and 2023 to catch passengers who didn’t follow airline bag policies. Passengers were then forced to pay the bag fee or miss their flight, the report said.
During the Dec. 4 hearing, top executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines and Frontier Airlines will appear before the Senate Permanent Subcommittee on Investigations. (Daniel Slim/AFP via Getty Images/Getty Images)
The report also highlighted how seat fees have risen, with United charging as much as $319 for a leg-up seat by 2023.
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“Our investigation has revealed new information about airlines exploiting passengers at high prices,” Blumenthal said in a statement.
During the hearing, Blumenthal said he would ask the airline management to “justify these practices.”
“As we enter the Thanksgiving weekend, we regret that travelers will be charged millions of dollars in baseless fees to call airlines but they just fatten their lines,” he said.
Travelers wheel luggage at the Spirit Airlines check-in desk at George Bush Intercontinental Airport, Nov. 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle via Getty Images/Getty Images)
About 79.9 million people will travel at least 50 miles from where they live in the six-day period starting Nov. 26, the Tuesday before Thanksgiving, and December 2, the Monday after the holiday, according to the latest estimates from AAA.
Airlines for America, a trade association representing major US airlines including American, Delta and United, told FOX Business it was disappointed by the PSI Majority Report, which it says “shows a clear failure of the subcommittee to understand the importance of the airline of the most competitive US industry delivers to customers and employees.”
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It also said these fees are “optional services that customers choose based on their needs and desires” and that airlines already provide consumers with full disclosure of all fees associated with air travel before they purchase a ticket.
Another 79.9 million people will make a trip of at least 50 miles from where they live in the six-day period starting Nov. 26 and Dec. 2, according to the latest projections from AAA. (Photos by Joe Raedle/Getty Images)
The trade group also said ticket prices, including associated revenues, are “at historic lows.” It said average domestic round-trip fares, including related fares, were 14% lower in 2023 compared to 2010.
Delta told FOX Business that the carrier voluntarily responded to the subcommittee’s requests, including providing documentation, responding to multiple requests and follow-ups and providing professional and subject matter expertise to the subcommittee’s request for discussion. discuss these fees.
“Besides safety, Delta’s top priority is taking care of our people and our customers and that includes our commitment to offering a choice of onboarding products that best meet our customers’ travel needs,” Delta said in a statement.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 96.83 | +1.59 |
+1.67% |
| AAL | AMERICAN AIRLINES GROUP INC. | 14.92 | +0.54 |
+ 3.76% |
| DAL | Company DELTA AIR LINES INC. | 64.49 | +1.15 |
+1.82% |
| SAVE | NO DATA AVAILABLE | – | – |
– |
| ULCC | FRONTIER GROUP HOLDINGS | 5.58 | -0.17 |
-2.96% |
Spirit Airlines said it has “a long history of providing affordable, low-cost flights, making travel accessible to the public.”
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The carrier said it is transparent about its products and pricing and disagrees with “many of the statements and conclusions contained in the report.”
“With that in mind, we believe that it is time for us to come together and discuss reasonable plans that can make even the largest and smallest airports benefit all travelers, including those who rely on flights like Spirit,” said the carrier.
American Airlines and United Airlines declined to comment. Frontier has not yet responded to FOX Business’ request for comment.
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