WASHINGTON, Nov 20 (Reuters) – A U.S. Senate committee on Monday announced an investigation into airline fees for baggage, seat assignments, ticket changes and other services, and the CEOs of five major airlines demanded justice for these fees, which generate billions of dollars in profits. their annual income.
Democratic Sen. Richard Blumenthal, chairman of the Permanent Subcommittee on Investigations, said these fees are often hidden and confusing to consumers.
Blumenthal becomes CEO of American Airlines (AAL.O), United Airlines (UAL.O), Delta Air Lines (DAL.N), Spirit Airlines (SAVE.N) and Frontier Airlines (ULCC.O). Write a letter with a detailed breakdown of how much you will collect from each fee, why, and the cost of providing each service.
The senator said that from 2018 to 2022, major U.S. airlines’ total revenue from baggage fees increased from $4.9 billion to $6.8 billion. Blumenthal also cited a report from a travel consultancy that found eight major U.S. airlines collected an estimated $4.2 billion in fees for seat reservations last year.
“U.S. airlines are increasingly charging ancillary fees that obscure the true cost of air travel,” Blumenthal said in the letter.
“These fee breakdowns are often not disclosed to customers until far into the ticket purchase process or after they have been purchased, making it difficult for customers to know the true total cost of tickets and comparison shops before purchasing. ” Blumenthal added. .
American Airlines, Delta Air Lines and United Airlines referred questions about the Senate investigation to the industry group Airlines for America, which did not immediately respond to requests for comment. Spirit and Frontier did not respond to requests for comment.
In 2018, airline CEOs campaigned against a bipartisan bill that would have required “reasonable and proportionate” baggage and change fees, convincing Congress to repeal the plan.
Last year, the U.S. Department of Transportation proposed requiring airlines to disclose baggage, ticket change and family seat fees on initial ticket display. It also proposed rules in 2021 that would require airlines to refund fees if baggage is significantly delayed and refunds for services that don’t work, such as in-flight Wi-Fi.
The ministry plans to finalize both regulations in early 2024.
The aviation law has been stalled in Congress, and would, among other things, prohibit airlines from charging families with young children to sit together most of the time.
Reporting by David Shepherdson; Editing by Will Dunham and Chris Reese
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