Hearing Report: Senate Subcommittee on Investigations Hearing on Airline Fees
December 4, 2024
Today, the Senate Homeland Security Committee Permanent Subcommittee on Investigations held a hearing entitled, “The Sky’s the Limit – New Revelations About Airline Fees.” Representatives from American, Delta, Frontier, Spirit, and United testified.
The hearing, which became testy at times, followed the release by subcommittee Democrats of an investigative report critical of airline fees for baggage and seating, as well as Spirit and Frontier’s practices of incentivizing employees to check oversize bags at the gate. The hearing covered these topics as well as the use of AI in pricing, questions about collection of personal data in the booking process, and revenue from credit card loyalty programs.
Chaired by Sen. Richard Blumenthal (D-CT), the hearing also addressed concerns about the lack of transparency in fee structures, which Blumenthal said he believes complicates trip budgeting for consumers. Other senators in attendance, including Sen. Maggie Hassan (D-NH) and Sen. Josh Hawley (R-MO), condemned practices such as arbitrary bag and seat fees, incentivizing employees to enforce carry-on bag charges, and family seating policies.
Airline executives defended the fees as offering customers choices, with some passengers opting for lower fares and fewer services. However, they acknowledged the need for clearer communication about these fees during the ticket-purchasing process. Sen. Blumenthal also noted his requests to both the Department of Transportation to investigate Spirit and Frontier’s practices on baggage collections by employees and the Treasury Department to investigate whether carriers are properly applying the IRS standards for the 7.5 percent excise tax on the cost of transportation. While the Subcommittee on Investigations does not have legislative jurisdiction over the airline industry, both Democrats and Republican committee members were generally hostile toward the carriers and may be likely to continue the committee’s oversight activities into the next Congress, even with a change in leadership.
Key Links:
Hearing video and witness testimony
Subcommittee Report “The Sky’s the Limit – The Rise of Junk Fees in American Travel”
Chair Blumenthal Letter to Sec. Pete Buttigieg
Chair Blumenthal Letter to Sec. Janet Yellin
Today, the Senate Homeland Security Committee Permanent Subcommittee on Investigations held a hearing entitled, “The Sky’s the Limit – New Revelations About Airline Fees.” Representatives from American, Delta, Frontier, Spirit, and United testified.
The hearing, which became testy at times, followed the release by subcommittee Democrats of an investigative report critical of airline fees for baggage and seating, as well as Spirit and Frontier’s practices of incentivizing employees to check oversize bags at the gate. The hearing covered these topics as well as the use of AI in pricing, questions about collection of personal data in the booking process, and revenue from credit card loyalty programs.
Chaired by Sen. Richard Blumenthal (D-CT), the hearing also addressed concerns about the lack of transparency in fee structures, which Blumenthal said he believes complicates trip budgeting for consumers. Other senators in attendance, including Sen. Maggie Hassan (D-NH) and Sen. Josh Hawley (R-MO), condemned practices such as arbitrary bag and seat fees, incentivizing employees to enforce carry-on bag charges, and family seating policies.
Airline executives defended the fees as offering customers choices, with some passengers opting for lower fares and fewer services. However, they acknowledged the need for clearer communication about these fees during the ticket-purchasing process. Sen. Blumenthal also noted his requests to both the Department of Transportation to investigate Spirit and Frontier’s practices on baggage collections by employees and the Treasury Department to investigate whether carriers are properly applying the IRS standards for the 7.5 percent excise tax on the cost of transportation. While the Subcommittee on Investigations does not have legislative jurisdiction over the airline industry, both Democrats and Republican committee members were generally hostile toward the carriers and may be likely to continue the committee’s oversight activities into the next Congress, even with a change in leadership.
Key Links:
Hearing video and witness testimony
Subcommittee Report “The Sky’s the Limit – The Rise of Junk Fees in American Travel”
Chair Blumenthal Letter to Sec. Pete Buttigieg
Chair Blumenthal Letter to Sec. Janet Yellin
