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US Senate panel criticizes rising airline seat charges, will name execs to testify By Reuters

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By David Shepardson

WASHINGTON (Reuters) – A U.S. Senate panel on Tuesday criticized rising airline charges for seat assignments and baggage and can name air provider executives to testify on Dec. 4.

Senator Richard Blumenthal, who chairs the Everlasting Subcommittee on Investigations, will convene a listening to titled “The Sky’s the Limit — New Revelations About Airline Fees” with senior executives from American Airways (NASDAQ:), United Airways Delta Air Traces (NYSE:) , Spirit Airways (OTC:) and Frontier to testify.

Blumenthal’s report disclosed the 5 airways collectively earned $12.4 billion in income from seat charges between 2018 and 2023 and mentioned final 12 months for the primary time United earned $1.3 billion in seat charges — greater than the $1.2 billion it earned from checked bag charges, the report mentioned.

Blumenthal’s panel spent a 12 months investigating, discovering carriers are more and more utilizing algorithms to set charges, focusing on pricing based mostly on buyer data and mentioned some carriers could also be avoiding federal transportation excise taxes by labeling some prices as nontaxable charges.

His committee discovered ultra-low price carriers Frontier and Spirit paid $26 million to gate brokers and others between 2022 and 2023 to catch passengers allegedly not paying for bag charges or having outsized objects.

Frontier personnel can earn as a lot as $10 for every bag a passenger is compelled to verify on the gate, the report mentioned.

Frontier mentioned: “the commission for gate agents is simply designed to incentivize our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly.” Spirit and United didn’t remark.

Airways for America, a commerce group, mentioned the optionally available charges that prospects can select, including common home round-trip fares, together with charges, had been 14% decrease in 2023 actual phrases versus 2010.

Delta mentioned it’s dedicated to “providing a choice of fare products that best meets our customers’ specific travel needs.”

Blumenthal mentioned Congress ought to require airways to supply extra detailed payment disclosures. He mentioned the USDOT ought to examine potential abuses in incentive-based assortment of charges.

Airways sued to dam USDOT’s new rule on upfront disclosure of airline charges, whereas airline CEOs in 2018 efficiently lobbied towards bipartisan laws to mandate “reasonable and proportional” baggage and alter charges.

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