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The airline industry is on track to make a record $118 billion in so-called “junk fees” this year, according to a study, despite President Joe Biden’s pledge to crack down on illegal excess fees.
Global traffic is 7.7% higher than the previous record set in 2019, when airlines collected $109.5 billion in ancillary revenue before the pandemic brought the airline industry to a halt. According to research It was conducted by aviation consulting company IdeaWorks Company and car rental service CarTrawler.
Part of this impressive revenue comes from checked baggage fees and seat reservation fees that families must pay if they want to sit together.
“Low-cost carriers continue to dominate in driving ancillary revenue streams, accounting for approximately 31% of the sector’s market share,” the report said.
President Biden on Monday announced a new initiative to increase transparency in baggage and seat fees for air travelers when they book flights.
“When you’re comparison shopping, you need to know right away the full price of a ticket,” Biden said at a White House Competition Council meeting.
Biden first launched a broad effort in September 2022 to crack down on junk fees charged by airline ticket companies, banks, airlines and other industries.
“The Department of Transportation is taking action against aviation junk fees that drive up prices for American families,” a Department of Transportation spokesperson told the Post on Tuesday.
“For example, we are working to ban junk fees on family seats so parents don’t have to pay extra just to sit with their children when they fly.”
The Journal has contacted Airlines for America (A4A), an industry group representing U.S.-based commercial airlines including American Airlines, United Airlines, Delta Air Lines and Southwest Airlines, for comment.
According to , U.S. travelers collected more than $6.8 billion in baggage fees in 2022. Ministry of Transport.
The worst offenders of these baggage-related add-ons are American Airlines and United Airlines, which cut baggage fees by $1.4 billion and $1.1 billion, respectively, last year, according to DOT statistics.
According to the Americans Website, most flights charge a $30 fee to check baggage for passengers without status. The airline updated its checked baggage policy on September 30, making all baggage fees non-refundable and applied per person.
As per United Airlines policy, the standard fee for checked baggage is $35. Website.
Baggage fees accounted for about 2.5% of American Airlines and United Airlines’ 2022 fiscal year revenue of $56.44 billion and $44.95 billion, respectively.
U.S. airlines earned a total of $700 million in cancellation and change fees in 2022, according to the DOT.
Surcharges are often not included in the ticket price listed on the airline’s website. Instead, additional fees are added at checkout and travelers are charged hundreds of dollars more than originally advertised when choosing a flight.
“Under the Biden-Harris Administration, the Department of Transportation has supported more than $2.5 billion in refunds to air travelers, set a record for airline fines for passenger defaults, and continues to fight to expand passenger rights. ” a DOT official told the Post.
“We will continue to work with airlines and put pressure on them where necessary to provide the right service to our travelers.”
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