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The Wall Street Publication > Blog > Lifestyle > Senate panel slams US airways for ‘junk’ charges, execs referred to as to testify
Lifestyle

Senate panel slams US airways for ‘junk’ charges, execs referred to as to testify

Last updated: November 26, 2024 9:28 pm
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Senate panel slams US airways for ‘junk’ charges, execs referred to as to testify
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Virtuoso Vice President of World Public Relations Misty Belles breaks down the vacation journey season, the tendencies and locations in addition to her outlook for 2025.

A U.S. senate panel is looking on executives from 5 main airways to testify throughout a congressional listening to in December over their rising use of “junk” charges to extend income. 

In the course of the Dec. 4 listening to, titled “The Sky’s the Limit – New Revelations About Airline Fees,” senior executives from American Airways, United Airways, Delta Air Traces, Spirit Airways and Frontier Airways will convene in entrance of the Senate Everlasting Subcommittee on Investigations (PSI). 

Sen. Richard Blumenthal, D-Conn, the chair of the subcommittee, introduced the listening to Tuesday simply because the committee launched the findings of its PSI Majority Report. The report highlighted how main airways have more and more used ancillary or junk charges to spice up their income, which has pushed up prices for customers, in accordance with Blumenthal.

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Within the report, the subcommittee stated airways have more and more charged individually for items and providers that had been as soon as included within the worth of a ticket over the previous twenty years. It is a tactic generally known as “unbundling,” and the subcommittee stated it “has not lowered the cost of flying for consumers, who now face additional charges to fly with carry-on or checked bags or to sit next to their minor children.” 

As an example, the report discovered that Frontier and Spirit paid $26 million to gate brokers between 2022 and 2023 to catch passengers not following airline bag insurance policies. The passengers are then compelled to pay a bag payment or miss their flight, the report stated. 

Throughout a Dec. 4 listening to, senior executives from American Airways, United Airways, Delta Air Traces, Spirit Airways and Frontier Airways will convene in entrance of the Senate Everlasting Subcommittee on Investigations.  (Daniel Slim/AFP by way of Getty Photos / Getty Photos)

The report additionally highlighted how seat charges have risen, with United charging as a lot as $319 for an extra-legroom seat in 2023. 

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“Our investigation has exposed new details about airlines exploiting passengers with sky-high junk fees,” Blumenthal stated in a press release. 

In the course of the listening to, Blumenthal stated he can be asking the airline executives “to justify these practices.” 

“As we head into the Thanksgiving weekend, we regret that travelers will be charged millions of dollars in fees that have no basis in cost to the airlines but simply fatten their bottom lines,” he stated.  

Spirit Airlines desk in Houston

Vacationers wheel baggage towards a Spirit Airways check-in desk at George Bush Intercontinental Airport, on Nov. 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle by way of Getty Photos / Getty Photos)

Some 79.9 million individuals will make journeys at the very least 50 miles from the place they dwell within the six-day span from Nov. 26, the Tuesday earlier than Thanksgiving, and Dec. 2, the Monday following the vacation, in accordance with latest projections from AAA. 

Airways for America, a commerce affiliation representing the foremost U.S. carriers together with American, Delta and United, informed FOX Enterprise that it is disillusioned within the PSI Majority Report, claiming it “demonstrates a clear failure by the subcommittee to understand the value the highly competitive U.S. airline industry brings to customers and employees.” 

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It additionally stated these charges are “optional services that customers choose based on their own needs and desires” and that airways already present customers with full disclosure of all charges related to air journey earlier than they buy a ticket.

An American Airlines and a JetBlue jet on the runway

Some 79.9 million individuals will make journeys at the very least 50 miles from the place they dwell within the six-day span from Nov. 26 and Dec. 2, in accordance with latest projections from AAA. ( Joe Raedle/Getty Photos / Getty Photos)

The commerce group additionally stated ticket costs, together with ancillary revenues, “are at historic lows.” It stated that common home round-trip fares, together with ancillaries, had been 14% decrease in 2023 in contrast with 2010. 

Delta informed FOX Enterprise that the provider has voluntarily responded to the subcommittee’s requests, which embody offering paperwork, responding to quite a few rounds of requests and follow-ons and offering a senior stage worker and a subject-matter skilled on the subcommittee’s request for an interview to debate these charges. 

“Next to safety, Delta’s number one priority is taking care of our people and our customers and includes our commitment to providing a choice of fare products that best meets our customers’ specific travel needs,” Delta stated in a press release. 

Ticker Safety Final Change Change % UAL UNITED AIRLINES HOLDINGS INC. 96.83 +1.59
+1.67%
AAL AMERICAN AIRLINES GROUP INC. 14.92 +0.54
+3.76%
DAL DELTA AIR LINES INC. 64.49 +1.15
+1.82%
SAVE NO DATA AVAILABLE – –
–
ULCC FRONTIER GROUP HOLDINGS 5.54 -0.20
-3.57%

Spirit Airways stated it has a “long history of offering affordable, low-fare flights, which has made travel more accessible for the public.” 

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The provider stated it’s clear about its merchandise and pricing and disagrees “with numerous statements and conclusions contained in the report.” 

“With that in mind, we believe it’s time to come together and discuss meaningful initiatives that would even the playing field between larger and smaller airlines to benefit all travelers, including those who rely on airlines like Spirit,” the provider stated. 

American Airways and United Airways declined to remark. Frontier has not responded to FOX Enterprise’ request for remark.

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