Airline executives plan to defend seat fees before Senate panel
Seats in the economy class cabin aboard an American Airlines Boeing Co. 777-300ER aircraft.
Brent Lewin | Bloomberg | Getty Images
U.S. airline executives will defend their seat fees before a Senate panel on Wednesday after the subcommittee accused the industry of charging “junk” fees to generate billions of dollars in revenue.
American, Delta, United, Spirit and Frontier collected $12.4 billion in seat fees between 2018 and 2023, according to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
These additional fees apply to seats with extra legroom, as well as seats in “preferred” locations closer to the front of the plane, or window or aisle seats, the report said.
“Our seat selection products are all voluntary,” Stephen Johnson, American’s chief strategy officer, said in written testimony before the hearing. “For customers who value sitting in more desirable locations, we offer the option to pay for more desirable seats.”
The Biden administration and some lawmakers have vowed to crack down on so-called “junk” fees and have named the airline industry as a target for cuts.
Major airline executives have defended their strategy of offering different types of economy services and additional fees for selecting specific seats or checked baggage, things that were once free with a ticket, saying those options will be communicated to customers.
Meanwhile, airlines are scrambling to add more premium seats on board to boost revenue.
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“For example, fares that charge a fee to select a seat are clearly marked with an icon indicating that a seat in a different fare class or with more legroom must be purchased for a fee,” Johnson said. “Similar information is included for possible baggage and other fees.”
Discounters like Spirit and Frontier, which pioneered the fee-based model in the US, prompted competitors to launch their own basic economy class. Spirit filed for Chapter 11 bankruptcy protection in November after a failed takeover by JetBlue Airways, a Pratt & Whitney engine recall, increasing competition and more demanding consumer demands.
The hearing, which begins at 10 a.m. ET, will also include testimony from executives from Delta, United, Frontier and Spirit.
