Economy class seats on an American Airlines Boeing 777-300ER aircraft.
Brent Lewin | Bloomberg | Getty Images
American Airlines executives will defend their seat fees before a Senate subcommittee on Wednesday after accusing the industry of charging “garbage” fees to make billions in revenue.
American Airlines, Delta Air Lines, United Airlines, Spirit Airlines and Frontier Airlines generated $12.4 billion in seat fees between 2018 and 2023, according to a report released by the Senate Permanent Subcommittee on Investigations on November 26.
The report states that these additional charges apply to seats with extra legroom, as well as seats in “preferred” positions near the front of the plane, or window or aisle seats.
“Our seat selection product is voluntary,” American Airlines Chief Strategy Officer Stephen Johnson said in written testimony before the hearing. “For those customers who value sitting in a more popular location, we do offer the opportunity to purchase more desirable seats for a fee.”
The Biden administration and some lawmakers have pledged to crack down on so-called “junk” fees and have targeted the airline industry for cuts.
Executives at the major airlines have defended their strategy of offering multiple types of economy service as well as surcharges for selecting certain seats or checking a bag, something that used to be free with tickets, and said those options have been communicated to client.
Meanwhile, airlines have been racing to add more premium seats on board to boost revenue.
“For example, fares that may require a fee to select a seat will be clearly marked with a symbol indicating that a fee is required to purchase a seat in a different fare class or with extra legroom,” Johnson said. “Potential baggage fees and other charges are also included Similar information.”
Discount stores such as Spirit and Frontier were the first to introduce fee-based models in the United States, prompting rivals to launch their own versions of basic economy. Spirit Airlines 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, which begins at 10 a.m. ET, will also include testimony from executives from Delta Air Lines, United Airlines, Frontier and Spirit.
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