Steve Johnson, vice chair and chief strategy officer at American Airlines Inc., from left, Robert Schroeter, senior vice president and chief commercial officer at Frontier Airlines Inc., Peter Carter, chief external affairs officer at Delta Airlines Inc., Matthew Klein, executive vice president and chief commercial officer at Spirit Airlines Inc., and Andrew Nocella, executive vice president and chief commercial officer at United Airlines Inc., are sworn-in during a Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations hearing in Washington, DC, US, on Wednesday, Dec. 4, 2024.
Al Drago | Bloomberg | Getty Images
U.S. airline executives are defending their seating fees before a Senate panel Wednesday after the subcommittee accused the industry of charging “junk” fees to bring in billions in revenue.
American, Delta, United, Spirit and Frontier brought in $12.4 billion in seating fees between 2018 and 2023, according to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
“Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime,” Sen. Richard Blumenthal, D-Conn., the subcommittee’s chair, said in written remarks before the hearing.
Those extra charges are for seats with additional legroom, as well as those in “preferred” locations that are closer to the front of the plane, or window or aisle seats, the report noted.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s chief strategy officer, said in written testimony ahead of the hearing. “For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats.”
The Biden administration and some lawmakers have promised to crack down on so-called “junk” fees and have cited the airline industry as a target for cuts.
Executives at large airlines have defended their strategy to offer several types of economy service and add-on fees for selection of certain seats or checked bags, things that used to come for free with a ticket, and have said these options are communicated to customers.
United’s revenue from seating fees totaled $1.3 billion last year, the first time since at least 2018 that category surpassed checked bag-fee revenue, according to the Senate panel’s report.
“In our view, a one-size-fits-all travel model would deny lower cost options to our customers,” said United’s Chief Commercial Officer Andrew Nocella, in written testimony. “For example, our Basic Economy product is designed to promote affordability by allowing customers to select the lowest airfare and opt out of paying for services that they do not intend to use.”
Nocella noted that United changed its policy to not charge for “preferred” seats to travelers flying with a child under the age of 12.
Meanwhile, carriers have been racing to add more high-end seats on board to capitalize on a jump in demand for roomier — and pricier — seats.
“Fares that may require a fee to select a seat, for example, are clearly denoted with a symbol indicating that a seat in a different fare class or with extra legroom will need to be purchased for a fee,” Johnson said. “Similar information is included for potential bag and other fees.”
Discounters such as Spirit and Frontier, which pioneered the fee-based model in the U.S., prompted competitors to come up with their own bare-bones basic economy class. Spirit filed for Chapter 11 bankruptcy protection in November after a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition and more demanding consumer tastes.
The hearing, which began at 10 a.m., was also set to include testimony from executives from Delta, United, Frontier and Spirit.