Senate Panel Hits Airlines Over ‘Junk Fees,’ Calls Executives to Testify | Global News Avenue

airlines and their “garbage fee” is in the spotlight in Congress as a new report from a Senate panel slams the billions of dollars in fees airlines charge each year, claiming they far exceed the true cost of the services they provide.

The Senate Permanent Subcommittee on Investigations said in a report Tuesday that airline fees for services such as checking a bag and reserving a specific seat are more frequently being calculated as algorithm This will vary with every purchase and has little to do with the actual cost of the service.

Lawmakers plan to hold a hearing on Dec. 4 in which executives from five airlines will testify.

Report says five airlines collected $12 billion in seat fees from 2018 to 2023

The report found that five U.S. airlines — Delta Air Lines (Dar), united (University of London College of Art), Americans (Asian Airlines Association), as well as lower-cost rivals Spirit and Frontier (Extra large capacitor) – $12.4 billion in seat fees collected from 2018 to 2023.

Last year, United’s revenue from seat fees exceeded checked bag fees for the first time, at $1.3 billion and $1.2 billion respectively, the report said.

reported that Spirit and realm Lawmakers claim that offering incentive payments to gate agents who spot potential baggage violations often forces consumers to pay fees or risk missing their flights.

Finally, the report also claims that airline able to artificially reduce their tax burden The 7.5% airfare tax rate is avoided by classifying some fees as “optional”.

Airline fees keep rising

In recent years, airlines have found more places to charge fees. delta recently told investors Its “premium” products should exceed income Main cabin for years to come.

earlier this yearAirlines are now required to disclose baggage and cancellation fees in advance, and consumers could save up to $500 million annually if they avoid unexpected fees, the Department of Transportation (DOT) said.

Senate subcommittee recommends various follow-up actions, including collection of more specific data by DOT garbage fee Investigate whether consumers were harmed and assess penalties as appropriate.