U.S. Airlines Earned $12 Billion from Seat Selection and Additional Charges

December 6:
An investigation by a Senate subcommittee revealed on Tuesday that airlines have made a killing off of passengers who pay to choose their seats or who want to sit in rows with somewhat more legroom. The study found that between 2018 and 2023, five American airlines made $12.4 billion from these fees. During that time period, airlines earned approximately $25 billion from checked luggage, which is their primary revenue generator along with ticket sales.

American, United, Delta, Spirit, and Frontier Airlines all had their seat fees totaled in Tuesday's report. Not included in the total was Delta's profitable Comfort+, a separate ticket category offered by the airline.

Even in coach, airlines have mastered the art of creating narrower niches and providing an ever-expanding menu of a la carte options. This has allowed the major airlines to meet the soaring demand for luxury vacation travel while yet providing affordable tickets for those looking to save money.

However, the research that follows a year-long investigation of airline procedures states that the increasing number of levies has rendered the process of purchasing tickets more ambiguous.

In the same way that it gathers detailed information on baggage fees, the study suggested that the Transportation Department do the same for seat fees. The report also found fault with Frontier and Spirit Airlines for their compensation structures, which they used to encourage upselling and catch customers trying to avoid paying for their carry-on bags.

The two budget airlines denied to the panel staff that any policy abuse had occurred. Frontier stated that it was following its policies to serve consumers fairly. Spirit clarified that it is forthright about prices and disputed "numerous statements and conclusions" made in the study.
The major U.S. airlines are offering more options to passengers and lowering ticket rates to historic lows, according to Airlines for America.

According to the Biden administration, several different sectors have been subject to so-called garbage fees. Some suggestions have been met with resistance from airlines. As of July, a judge on the federal appeals court had temporarily barred a new rule from the Transportation Department that would have required the disclosure of fees with airfare instead of later in the booking process. This rule is currently being examined. The five airlines cited in the study will be present at a meeting next week organized by the Senate panel to discuss airline costs.