US airlines brought in over $12 billion in seating fees between 2018 and 2023. The Senate Permanent Subcommittee on Investigations found that American, Delta, United, Spirit, and Frontier collected this amount by charging customers extra for seats with additional legroom or preferred locations.
Airlines claim their fee-based model is voluntary and allows customers to pay for more desirable seats. However, lawmakers have criticized the practice, calling it “junk” fees, and promising to crack down on it. Executives from major airlines defended their strategy, saying that a one-size-fits-all travel model would not provide lower-cost options for customers.
United’s revenue from seating fees reached $1.3 billion last year, surpassing checked bag-fee revenue for the first time since 2018. Airlines claim they clearly communicate additional fees to customers through symbols and written information.
The US airline industry is racing to add more high-end seats as demand for roomier seats increases. Competitors like Spirit and Frontier pioneered the fee-based model, prompting others to develop their own basic economy class options. The Senate hearing aimed to address concerns over seating fees and their impact on customer affordability.
Source: https://www.cnbc.com/2024/12/04/airline-executives-senate-panel-seat-fees.html