WASHINGTON- A report published by the Senate subcommittee has revealed that US airlines are earning billions of dollars in so-called ‘junk fees’ for charging customers for ad-hoc items like carry-on baggage, checked-in luggage as well as pre-booking of seats.
A number of airlines also incentivized their staff to identify passengers who are reluctant to pay luggage fees while boarding flights, with the likes of Frontier and Spirit spending $26 million in staff payments for catching passengers not following their baggage policies.
US Airlines Makes Billions with Junk Fees
The big five US airlines collectively earned a staggering $12 billion by charging passengers for pre-booking their preferred seats, with extra legroom seats being the most lucrative of them all.
United Airlines (UA) charged the highest with fares going as high as $319, whereas its competing careers, Delta Air Lines (DL) and American Airlines (AA) capped off at $264 and $140 respectively.
Interestingly, even the low-cost carriers pocketed a significant amount as Spirit’s (NK) highest fee for an extra legroom seat was $299 whereas Frontier (F9) charged up to $141.
An excerpt which was part of a 55-page report by the Biden Administration said,
Seat fees have grown to be extremely typical in the aviation industry around the world with even the most globally-renowned and expensive carriers charging money for selections in economy class.
As a matter of fact, British Airways (BA) among other carriers also charges its passengers for reserving a preferred seat in business class.
What Customers Expect Next?
The Department of Transportation under the Biden administration was understood to be pro-customer, so airlines were understandably not happy with several measures that were taken and might also not be very impressed that their statistics were made public by the outgoing Senate.
With the Donald Trump administration coming in, airlines can expect better government policies in their favour as was the case between 2016 and 2020, which many considered to be a boom period for the American aviation industry.
Customers can expect airlines to have even greater leeway when it comes to charging them fees for additional services like baggage and seat selection. Delta’s CEO Ed Bastian has welcomed Trump’s appointment with open arms and it is likely that the rest of the US airlines are also looking forward to a newer government.
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