US airlines make a fortune thanks to 'bumper' surcharges

(CLO) According to a US Senate report last Tuesday, airlines have pocketed billions of dollars from surcharges, such as charging customers extra fees to choose seats or bring carry-on luggage.

Some airlines even pay staff cash to find customers who try to avoid carry-on baggage fees, the report said.

Between 2018 and 2023, five US airlines raked in more than $12 billion from seat selection fees, a cost that was split off even though it was already included in the price of airfare.

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In 2023, United Airlines charged up to $319 for a seat with extra legroom, Spirit Airlines charged $299, Delta Air Lines charged $264, Frontier Airlines charged $141, and American Airlines charged $140.

“Seat fees are becoming more expensive and widespread,” the report said. “The five major airlines have introduced fees for a variety of seat types, from extra legroom to window seats to advance seat selection, forcing parents to pay extra to sit next to their children.”

In response to this situation, the administration of outgoing President Joe Biden is looking for ways to tighten regulations on airlines. Accordingly, earlier this month, the US Department of Transportation will issue regulations requiring airlines to automatically refund passengers when flights are canceled or delayed.

The report details how low-cost carriers like Frontier and Spirit have been able to increase their baggage fee revenue. Specifically, the two airlines have spent up to $26 million on bonuses to employees, encouraging them to find ways to penalize passengers who violate carry-on baggage rules, often resulting in passengers paying extra fees or even missing their flights.

“Frontier employees can earn up to $10 for each bag that a passenger is forced to check at the gate,” the report said. In a statement to CNN, Frontier acknowledged offering commissions to gate agents.

The report also found that some airlines appear to be trying to avoid federal taxes by labeling some fees as “non-taxable.”

However, the airline industry lobby group Airlines for America said: "Our members comply with all laws and regulations, including taxes and fees." Spirit Airlines said it disagreed with most of the report and insisted it was transparent about its service and pricing.

In August, the US Department of Transportation proposed regulations that would eliminate seat selection fees for families who want to sit together. “I know that some airline CEOs have expressed a desire for the next administration to favor businesses over consumers,” Transportation Secretary Pete Buttigieg said.

The US Senate Permanent Subcommittee on Investigations announced that it will hold a hearing next week, with the participation of officials from major airlines, including American Airlines, Delta Air Lines, United Airlines, Frontier Airlines, and Spirit Airlines.

Ha Trang (according to CNN)

Source: https://www.congluan.vn/cac-hang-hang-khong-my-kiem-bon-tien-nho-boi-thu-phu-phi-post323243.html