Senators had tough words for US airline executives during an oversight hearing that took place on Wednesday. Executives from five airlines attended the hearing to answer questions and face criticism over bag fees.
As expected, executives have stood firmly on their bag fee policies. One leader in particular has even gone as far to call those that avoid paying for carry-on bags ‘shoplifters’.
Bag Fee Drama in the Senate
A US Senate bipartisan subcommittee got together Wednesday to publicly criticize major airlines that impose fees on luggage and seat selection. Executives from American, Delta, United, Spirit, and Frontier attended the event to answer politicians’ questions. The hearing went on for two hours.
The previous week, the Permanent Subcommittee on Investigations found that the five airlines collected a combined $12.4 billion from seat selection fees. This period was from 2018 to 2023. Read a report of the Senate’s findings, titled ‘The Sky’s the Limit’, at this link.
The leader of the subcommittee and Senator Richard Blumenthal (D-CT) shared these remarks during the hearing Wednesday:
“Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime.”
Blumenthal also accused the airlines of ‘discriminating against passengers’ by raising fares and fees to consumers that the airlines think will pay extra.
Senator Josh Hawley (R-MO) also didn’t hold back on criticizing the airlines:
“This is Russian roulette…Nobody enjoys flying on your airlines. It’s a disaster…absolutely terrible.”
Hawley was also perplexed as to why some airlines charge noticeable differences in bag fees on the exact same flight. He was also critical of Spirit and Frontier Airlines allegedly paying employees $26 million in bonuses.
These bonuses were for catching passengers trying to travel with a bag that was too big for a personal bag. Thus the attendant would pressure the customer into paying a carry-on bag fee.
American Airlines Chief Strategy Officer Stephen Johnson shared an explanation at the hearing for increased seat charges:
“Our seat selection products are all voluntary…For customers who value sitting in more in-demand locations, we do offer the opportunity to pay for more desirable seats…Fares that may require a fee to select a seat, for example, are clearly denoted with a symbol indicating that a seat in a different fare class or with extra legroom will need to be purchased for a fee.”
United Chief Commercial Officer Andrew Nocella argues that a ‘one-size-fits-all’ model for seating would deny affordable options to passengers.
“For example, our Basic Economy product is designed to promote affordability by allowing customers to select the lowest airfare and opt out of paying for services that they do not want. But we also have customers who seek more services, and they retain the ability to choose the services they value, for an incremental fee, like a seat with extra legroom or checked bags,” Nocella explained.
Frontier Defends Premium Fees
The subcommittee’s report also criticized Frontier in particular. The report states Frontier pays gate agents $10 for each bag he or she forces a passenger to check. A Frontier official responded that enforcing bag sizes was necessary because agents don’t want passengers to take more than what they paid for from the airline.
During an interview with Reuters, Frontier Chief Executive Officer Barry Biffle further defended the practice:
“These are shoplifters. These are people that are stealing…it’s not equitable to everyone who follows the rules.”
Biffle also had comments on Frontier’s new ‘First Class’ seat offerings. He cited that a fraction of Frontier’s customers were willing to pay extra for roomier and more comfortable seat options.
The CEO also expressed optimism regarding the airline industry under President-elect Donald Trump. Biffle predicts that a Trump administration would focus on more important issues, such as safety, over ‘regulating prices and experiences’.
