Economy class seats on an American Airlines Boeing 777-300ER aircraft.
Brent Lewin | Bloomberg | Getty Images
American Airlines executives will defend their seat fees before a Senate subcommittee on Wednesday after accusing the industry of charging “garbage” fees to bring in passengers billions in revenue.
American, delta, unitedspirit and border The company brought in $12.4 billion in seat fees between 2018 and 2023, according to a Nov. 26 report from the Senate Permanent Subcommittee on Investigations.
The report states that these additional charges apply to seats with extra legroom, as well as seats in “preferred” positions near the front of the plane, or window or aisle seats.
“Our seat selection product is voluntary,” American Airlines Chief Strategy Officer Stephen Johnson said in written testimony before the hearing. “For those customers who value sitting in a more popular location, we do offer the opportunity to pay for more desirable seats.”
The Biden administration and some lawmakers have pledged to crack down on so-called “junk” fees and have targeted the airline industry for cuts.
Executives at the major airlines defended their strategy of offering multiple types of economy service and surcharges for selecting certain seats or checking bags that used to be free with tickets, and said those options had been communicated to client.
Meanwhile, operators have been racing to add more premium seat Increase income on board.
“For example, fares that may require a fee to select a seat will be clearly marked with a symbol indicating that a fee is required to purchase a seat in a different fare class or with extra legroom,” Johnson said. “Potential baggage fees and other charges are also included Similar information.”
Discount stores such as Spirit and Frontier were the first to introduce fee-based models in the United States, prompting rivals to launch their own versions of basic economy. Spirit Airlines filed for Chapter 11 bankruptcy protection in November after a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall, increased competition and more demanding consumer tastes.
The hearing, which begins at 10 a.m. ET, will also include testimony from executives from Delta Air Lines, United Airlines, Frontier and Spirit.
