U.S. airline executives are set to defend their seating fees before a Senate panel Wednesday after the subcommittee accused the industry of charging ”junk” fees to bring in billions in revenue.
American, Delta, United, Spirit and Frontier brought in $12.4 billion in seating fees between 2018 and 2023, according to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
Those extra charges are for seats with additional legroom, as well as those in “preferred” locations that are closer to the front of the plane, or window or aisle seats, the report noted.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s chief strategy officer, said in written testimony ahead of the hearing. “For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats.”
The Biden administration and some lawmakers have promised to crack down on so-called “junk” fees and have cited the airline industry as a target for cuts.
Executives at large airlines have defended their strategy to offer several types of economy service and add-on fees for selection of certain seats or checked bags, things that used to come for free with a ticket, and have said these options are communicated to customers.
Meanwhile, carriers have been racing to add more premium seats on board to increase revenue.
“Fares that may require a fee to select a seat, for example, are clearly denoted with a symbol indicating that a seat in a different fare class or with extra legroom will need to be purchased for a fee,” Johnson said. “Similar information is included for potential bag and other fees.”
Discounters such as Spirit and Frontier, which pioneered the fee-based model in the U.S., prompted competitors to come up with their own bare-bones basic economy class. Spirit filed for Chapter 11 bankruptcy protection in November after a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition and more demanding consumer tastes.
The hearing, which begins at 10 a.m. ET, will also include testimony from executives from Delta, United, Frontier and Spirit.