[Lauren]
AS WE HEAD INTO A MAJOR HOLIDAY TRAVEL WEEKEND …
LAWMAKERS SAY AIRLINES ARE RAKING-IN BILLIONS OF DOLLARS IN SO-CALLED ‘JUNK FEES.’
A U-S SENATE SUBCOMMITTEE RELEASED A REPORT TUESDAY ABOUT ALL THE EXTRA CHARGES YOU PAY WHEN YOU FLY, LIKE CHECKING BAGS OR CHOOSING YOUR SEAT.
IT FOUND FROM 20-18 TO 20-23, FIVE U-S AIRLINES MADE MORE THAN 12 BILLION DOLLARS ON SEAT SELECTION FEES ALONE.
THE REPORT SAYS FOR AN EXTRA LEGROOM SEAT …
UNITED CHARGED AS MUCH AS 319 DOLLARS
SPIRIT CHARGED UP TO 299 DOLLARS.
DELTA CHARGED AS MUCH AS 264 DOLLARS.
FRONTIER … 141 DOLLARS.
AND AMERICAN … 140 DOLLARS.
LAWMAKERS REPORT SOME OF THE FEES ARE SET UP TO AVOID TAXES.
FEDERAL LAW APPLIES A 7-5 PERCENT TAX TO PASSENGER AIR TRANSPORTATION WITH SOME AIRLINES CALLING CERTAIN SERVICES “OPTIONAL” TO BYPASS THE TAX ON THOSE CHARGES.
THE AMBIGUITY ENCOURAGES AIRLINES TO CHARGE MORE IN NON-TAXABLE FEES, WITH SOME MAXIMIZING THIS STRATEGY TO GAIN AN ADVANTAGE ATTRACTING BUDGET-CONSCIOUS CUSTOMERS.
THE REPORT ALSO FOUND SOME AIRLINES, LIKE FRONTIER AND SPIRIT, REWARD AGENTS FOR CATCHING TRAVELERS NOT FOLLOWING CARRY-ON RULES.
EARLIER THIS MONTH THE BIDEN ADMINISTRATION STARTED RAMPING UP CONSUMER PROTECTINGS … WITH THE DEPARTMENT OF TRANSPORTATION PROPOSING TO BAN FAMILY SEATING JUNK FEES TO GUARANTEE PARENTS CAN SIT WITH THEIR KIDS FOR NO EXTRA CHARGE.
THIS LED TO AT LEAST FOUR AIRLINES OFFERING FEE-FREE FAMILY SEATING.
LAST WEEK, TRANSPORTATION SECRETARY PETE BUTTIGIEG RESPONDED TO CRITICISM FROM AIRLINE EXECUTIVES WHO SAY THEY’RE BEING OVER REGULATED. SOT: Pete Buttigieg, U.S. Transportation Secretar
IT’S NOT CLEAR EXACTLY WHAT INCOMING PRESIDENT DONALD TRUMP’S PLANS ARE FOR THE AIRLINE INDUSTRY.
THE SENATE SUBCOMMITTEE WILL HOLD A HEARING NEXT WEEK GIVING AIRLINE OFFICIALS A CHANCE TO RESPOND.
FOR SAN – I’M LAUREN TAYLOR.
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