December 22, 2024
Travel & Tourism

US Senate to Investigate Fee Hikes by Major Airlines in Upcoming Hearing

US Senate to Investigate Fee Hikes by Major Airlines in Upcoming Hearing

Rising fees for seat assignments and luggage are prompting increased scrutiny from the U.S. Senate. The Permanent Subcommittee on Investigations has announced a hearing with executives from major U.S. airlines to explain why these fees have been rising.

The hearing, titled “The Sky’s the Limit—New Revelations About Airline Fees,” will take place on December 4 and is chaired by Senator Richard Blumenthal. Executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines, and Frontier will be called to testify.

This investigation, led by the subcommittee under the Committee on Homeland Security and Governmental Affairs, has been ongoing for the past year. Between 2018 and 2023, the five airlines earned a total of $12.4 billion in seat fee revenue alone. Notably, United Airlines reported earning $1.3 billion from seat fees in 2023, marking a record for the company. The report suggests that some airlines might be evading federal transportation excise taxes by labeling certain charges as “nontaxable fees.”

Blumenthal argues that airlines should be legally required to provide more transparent disclosures regarding these fees. He has called for the U.S. Department of Transportation to investigate potential abuses within the current fee structures.

This year has seen a noticeable increase in airline fees, particularly for checked baggage. Major carriers such as Delta, United, Alaska, JetBlue, and American Airlines have all raised their baggage fees. In April, the Biden Administration passed a bill aimed at making airline fee structures more transparent, which could save American travelers approximately $500 million annually. However, airlines have responded with a lawsuit challenging the bill.

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