Seats in the economy class cabin American Airlines Boeing Co. on a 777-300ER aircraft.
Brent Lewin | Bloomberg | Getty Images
US airline executives will defend their seat fees before a Senate panel on Wednesday after a subcommittee accused them of charging “junk” fees to bring the industry down. with billions in revenue.
the american, delta, unitedSpirit and The limit It included $12.4 billion in seat fees between 2018 and 2023, according to a report released Nov. 26 by the Senate Permanent Subcommittee on Investigations.
Those extra charges are for seats with extra legroom, as well as “preferred” seats closer to the front of the plane or window or aisle seats, the report said.
“Our seat selection products are voluntary,” American Chief Strategy Officer Stephen Johnson said in written testimony before the hearing. “For customers who value sitting in high-demand locations, we offer the option to pay for more desirable seats.”
The Biden administration and some lawmakers have pledged to reduce so-called “junk” fees and have cited the airline industry as a target for the cuts.
Executives at major airlines have advocated a strategy of offering a variety of economy services and fees for choosing certain seats or checked bags, things that used to come free with the original ticket, and said those options are being passed on to customers.
Meanwhile, carriers have been racing to add more premium seats to increase revenue on board.
“For example, fares that may require a seat selection fee are clearly indicated with a symbol indicating that a fare will be charged for a seat in a different fare class or a seat with extra legroom,” Johnson said. “Similar information is included for potential purse and other fees.”
Discounters like Spirit and Frontier, which pioneered the fee-based model in the US, saw competitors create their own 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, at 10 a.m. ET, will also include testimony from executives from Delta, United, Frontier and Spirit.
