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CEO NA Magazine > News > Report reveals major airlines earn billions in fees

Report reveals major airlines earn billions in fees

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Report reveals major airlines earn billions in fees
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A report released today by the Senate Permanent Subcommittee on Investigations found airline “junk fees” are costing consumers billions of dollars. The Senate said it would hold a hearing with American, Delta, United, Frontier and Spirit officials next week.

“Junk fees” refer to the extra charges airline customers face to select a seat or use a carry-on bag. The report said some airlines compensate workers with cash for catching customers attempting to avoid junk fees, such as carry-on bags. Low-cost airlines Frontier and Spirit were accused of spending $26 million on employee bonuses to “catch” customers at the gate with oversized bags.

“Frontier personnel can earn as much as $10 for each bag a passenger is forced to check at the gate,” the report said. “One Frontier official told the Subcommittee that bag policy enforcement was necessary because the airline does not want customers to be taking more or ‘stealing’ from the airline.”

Between 2018 and 2023, five major airlines made $12 billion in revenue on seat selection fees. A cost that used to be included as part of an airline ticket. “Seat fees have grown more expensive and farther-reaching,” the report stated, “These five airlines charge passengers extra for additional legroom, aisle, and window seats, or even selecting a seat in advance, compelling parents with minor children to pay to sit together.”

The report is seen as a move by the Biden Administration to increase consumer protections before transferring power to the “more corporate-friendly” Trump Administration.

By CEO NA Editorial Staff

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