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Senate panel questions airline executives over 'junk' fees

Executives from American Airlines, Delta Air Lines, United Airlines, Spirit Airlines and Frontier Airlines testified to the Senate's Permanent Subcommittee on Investigations.
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"It's like Russian roulette."

That's how Sen. Josh Hawley (R-MO) described how customers think about potential airline service fees when they go to book travel.

Hawley was one of several senators who grilled airline executives during a hearing on Wednesday.

Executives from American Airlines, Delta Air Lines, United Airlines, Spirit Airlines and Frontier Airlines testified to the Senate's Permanent Subcommittee on Investigations. The hearing focused on what lawmakers call "junk" fees — the additional service fees airlines charge, including for selecting a seat and checking a bag.

In a report from the subcommittee's Democratic majority released last week, it found those five airlines "generated $12.4 billion in seat fee revenue between 2018 and 2023."

The report also found Frontier and Spirit pay incentives to gate agents for enforcing their bag policies, and it said airlines are increasingly using algorithms to determine prices and are working to use customer information to target pricing.

"I hope your takeaway when you go back to your CEOs is that there is bipartisan frustration and even fury about the current practices," said Sen. Richard Blumenthal (D-CT), who chairs the subcommittee. "They simply won't fly anymore."

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Hawley said the fees are part of why the flying experience has gotten worse.

"Flying on your airlines is horrible," Hawley said. "It's a disaster. You charge people fees that they know nothing about. You harass them to death."

The airline executives largely defended their practices of charging separately for different services.

"Frontier's unbundled model has democratized air travel and made flying affordable for millions of families, individuals and small businesses who might not otherwise have been able to travel," said Robert Schroeter, the chief commercial officer for Frontier Airlines. "It has also driven competition, prompting other airlines to lower fairs and create new cost-effective options."

Delta Air Lines chief external affairs officer Peter Carter said the potential extra fees are about giving travelers more options.

"Our approach to optional products and services is rooted in the fact that we serve a variety of customers who have different needs and who want options in order to make choices when they travel," Carter said.

It doesn't appear these additional fees will be grounded anytime soon. Earlier this year, a federal appeals court blocked a Department of Transportation rule that would have required airlines to be more transparent about service fees when people book flights.

For now, the best way to avoid these fees may be to shop around, according to consumer advocate Christopher Elliott.

"The airlines are making a lot of money from these surprise 'gotcha' fees that they're charging you," Elliott said. "So, the important thing is making sure you're not surprised by them. Read all the fine print. Make sure that you know what you're getting with your airline ticket, and if you're not getting what you want, go to a different airline."