Summary

  • Budget airlines in the US have cut surprise fees, copying ‘hybrid’ carriers like Breeze Airways with new transparent pricing models.
  • Spirit Airlines joins the fee-free movement, eliminating change fees for all ticket fares and providing more flexibility for passengers.
  • New Department of Transportation rules aim to save customers $500 million yearly by making airlines transparent about fees upfront. Legislative may end family seating fees.

Budget airlines across the United States have implemented a series of changes over the past few weeks in an effort to reduce surprise fees for consumers. Spurred to action potentially by new legislation in the US, Frontier Airlines and Spirit Airlines have both reduced extra fees for passengers.

A Fee-Free Frontier?

On May 17th, Frontier Airlines announced it was overhauling its fee structure to be more transparent. Amenities are now included to various degrees in the four new airfare bundles, a move that echoes ‘hybrid’ carriers like Breeze Airways, which offers Nice, Nicer, and Nicest packages with increasing levels of benefits.

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Frontier Airlines Scraps Change Fees, Overhauls Pricing As Reality Of FAA ‘Junk Fees’ Rule Bites

The airline’s new pricing model similarly reflects what its legacy competitors offer.

The new changes are part of a broader overhaul to rebrand the carrier as “The New Frontier,” the next iteration of the airline. Frontier’s CEO Barry Biffle cited the changes as “a key part of our promise to make travel with Frontier as flexible and worry-free as possible.” Yet, the new benefits are not for all customers.

Frontier Airlines planes on a sunny day

Photo: Denver International Airport

The headline feature of eliminating change fees applies only to passengers booked in the top three of the four tiers (Standard, Premium, and Business). Passengers booking the Basic package will potentially still be out of pocket for last-minute changes.

In addition, the carrier is reintroducing live phone support for customers within 24 hours of their flight or those with Elite status, extending the validity of flight credits from three to twelve months and offering a “For Less” guarantee to award members with 2,500 FRONTIER Miles if they find a comparable flight on the same route and date for a lower price elsewhere.

Spirit sees an opportunity

Last week, another ultra-low-cost carrier, Spirit Airlines, announced that it will eliminate change and cancelation fees for all ticket fares. The move echoes Frontier’s changes but most notably covers all tickets, including the most basic economy package.

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Spirit Airlines Follows Frontier & Scraps Change Fees

The new policy allows more flexibility for passengers.

The fees were previously charged according to how far in advance the changes were made, with the fees applied to anyone changing flights with less than 60 dates before departure as follows:

– $119 for ticket changes made 0 to 6 days before departure.

– $99 for changes made 7 to 30 days prior.

– $69 for changes made between 31 and 59 days before departure.

Spirit Airlines and Southwest Airlines planes at Denver Airport

Photo: Denver International Airport

The airline previously provided an exception for those who booked the wrong flight by accident, with a 24-hour grace period to change or cancel reservations without any penalties.

Straight from the top

Ancillary fees, as they are known within the industry, consist of charges above and beyond the quoted far for services often provided for free on legacy carriers. Adding such charges has created a significant source of income for both traditional and low-cost carriers alike, enabling them to offer headline prices as low as $30 for flights while charging more than that for things like bags and seat assignments.

According to the US Bureau of Transportation Statistics, airline revenue from baggage fees increased by more than 30% between 2018 and 2022, while their operating revenue grew at less than half that pace in the same period.

The current administration has made these fees a focal point of its policy and recently announced changes after concluding that the extra fees “Have become more complex over time and continue to confuse passengers, requiring additional action by the Department.” These actions were highlighted recently in the implementation of new rules protecting airline customers.

Last month, The Department of Transportation (DOT) announced measures to protect airline passengers from what it defines as “surprise junk fees.” The rules now require airlines and ticket agents to tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag, and for canceling or changing a reservation.

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Automatic Refunds: What US Flyers Need To Know About The New DOT Rules

Significant changes to how airlines deal with refunds.

The move is intended to help prevent customers from being what appears to be the most affordable option, only to be hit with additional fees that well exceed the initially quoted price. According to US Transportation Secretary Pete Buttigieg, the move will save customers up to $500 million per year:

“Airlines should compete with one another to secure passengers’ business—not to see who can charge the most in surprise fees.

“DOT’s new rule will save passengers over half a billion dollars a year in unnecessary or unexpected fees by holding airlines accountable for being transparent with their customers.”

The current legislation does not include a ban on fees for family seating assignments on flights. However, Simple Flying has confirmed that the Department of Transportation plans to propose a separate rule that bans airlines from charging such fees altogether.

Does this spell the end of LCCs in the United States? Low-cost carriers have faced governmental pressure worldwide, and both have folded and thrived. It now remains to be seen how other carriers react and whether the changes result in increased ticket prices for customers or savings predicted by the Department of Transportation.

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