Hotel Biz Link – Global Hotel Business Magazine

The Global News Source of Hotel & Lodging Industry

U.S. Senate Launches Inquiry into Airline Fees Amidst Transparency Concerns

The Senate formally requested detailed breakdowns from major U.S. airlines—American, Delta, Frontier, Spirit, and United—seeking information on the rationale behind implementing these fees, the revenue generated by each carrier, and the cost associated with providing each service.

U.S. Senate Launches Inquiry into Airline Fees Amidst Transparency Concerns

The United States Senate has initiated an investigation into airline fees, including charges for baggage, seat selection, ticket changes, and other services. The move comes as Democratic Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, expresses concerns about the opacity and confusion surrounding these fees.

Blumenthal and his team have formally requested detailed breakdowns from major U.S. airlines—American, Delta, Frontier, Spirit, and United—seeking information on the rationale behind implementing these fees, the revenue generated by each carrier, and the cost associated with providing each service.

“U.S. airlines increasingly charge ancillary fees that obscure the actual cost of air travel,” stated Blumenthal. He highlighted the challenge faced by customers, stating, “These itemized fees are often not disclosed to customers until well into the ticket purchasing process or after a ticket has been purchased, making it difficult for customers to know the true, total cost of a ticket and comparison shop prior to purchase.”

Blumenthal’s research uncovered data indicating that the top eight U.S. airlines collected approximately $4.2 billion in fees for seat selection. Moreover, revenue from baggage fees surged from $4.9 billion to $6.8 billion between 2018 and 2022.

Addressing the need for greater transparency, Blumenthal referenced last year’s proposal by the U.S. Transportation Department for new rules. These rules would mandate carriers to disclose fees for baggage, ticket changes, and family seating from the initial display of airfare on their websites.

The Department of Transportation is actively working towards approving these regulations early in 2024. The investigation and proposed regulations aim to provide air travelers with clearer information on the true costs associated with their flights.