Airline executives set to defend seat fees before Senate panel

From CNBC: 2024-12-04 05:00:01

U.S. airline executives are under scrutiny for charging billions in seating fees, with a report revealing American, Delta, United, Spirit, and Frontier brought in $12.4 billion between 2018 and 2023. The fees are for seats with extra legroom or in preferred locations. The Biden administration aims to crack down on such fees.

Airlines defend offering various economy services and add-on fees for seat selection or checked bags, a strategy they claim is communicated to customers. Carriers are adding more premium seats to boost revenue amid competition. Discounters like Spirit and Frontier prompted competitors to introduce basic economy class options.

American Airlines’ chief strategy officer stated that fees for seat selection are clearly indicated for customers. Spirit faced financial challenges, including bankruptcy, due to various factors. The Senate hearing will feature testimonies from executives of major airlines like Delta, United, Frontier, and Spirit.



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