Senators on Wednesday slammed increasing airline fees for baggage and seat assignments, saying carriers are looking for new ways to extract more money from passengers.
saw Richard Blumenthal, who chairs the Permanent Subcommittee on Investigations, attack the carriers in a hearing with executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines and Frontier.
“Airlines these days see their customers as little more than piggy banks to be jostled for every possible dime,” Blumenthal said.
Republican Sen. Josh Hawley asked why some airlines charge passengers different fees for baggage on the same flight.
“It’s Russian roulette,” Hawley said. “No one likes to fly on your airlines. It’s a disaster. … It’s terrible. It’s absolutely horrible”
A report released by Blumenthal last week found that the five airlines collectively earned $12.4 billion in revenue from seat fees between 2018 and 2023.
Blumenthal’s panel spent a year investigating, finding that carriers are increasingly using algorithms to set rates.
Carriers are working on customer-specific pricing “to discriminate against passengers and increase fares and fees for customers the airline believes will pay more,” Blumenthal said.
He said airlines say fares are transparent and they need to offer consumers choice as they face rising costs.
American Airlines Vice President Stephen Johnson said carriers need to “appeal to more budget-conscious customers.”
Delta CEO Peter Carter said the carrier offers “options and value to every customer. … Fare practices that erode our customers’ trust and loyalty are not in our best interest.”
United chief executive Andrew Nocella said the end of family seats in 2023 and Wi-Fi charges next year will reduce revenue by hundreds of millions of dollars.
Blumenthal’s committee found that budget carriers Frontier and Spirit paid $26 million to gate agents and others between 2022 and 2023 to catch passengers who didn’t pay baggage fees or had oversized items.
Border personnel can earn $10 for each piece of luggage passengers have to check at the gate, the report said. Frontier CEO Barry Biffle defended the practice, telling Reuters passengers trying to avoid paying were shoplifting.
Spirit executive Matthew Klein said the airline stopped paying employees for picking up passengers in September. 30.
Earlier this year, airlines sued to block the Transportation Department’s new advance fee disclosure rule, while carriers in 2018 successfully lobbied against bipartisan legislation to mandate baggage fees and “reasonable and proportionate” changes.
#Airline #chiefs #fire #fare #hikes #passengers #shock #walking #pigs
Image Source : nypost.com