In a recent government meeting, the Permanent Subcommittee on Investigations unveiled alarming findings regarding the practices of major U.S. airlines, including American, Delta, United, Frontier, and Spirit. The investigation revealed that these airlines collectively generated over $3 billion in seat fees in 2023 alone, marking a 50% increase from 2018. This revenue is derived solely from fees for selecting specific seats, separate from the cost of airfare.

The subcommittee highlighted a troubling trend where smaller airlines, such as Frontier and Spirit, are pioneering aggressive fee strategies that larger airlines subsequently adopt. Notably, Frontier has implemented a \"bounty bag program,\" incentivizing gate agents to charge passengers for carry-on bags, which could generate an estimated $40 million in its first year. This practice has contributed to a surge in customer complaints, as airlines increasingly adopt a hostile stance towards passengers who do not comply with fee structures.

The investigation also pointed out that airlines are obscuring fee information, with one airline admitting to hiding seat fees until late in the booking process to increase purchase completion rates. This lack of transparency has resulted in significant revenue, with United Airlines earning $1.3 billion from seat fees last year, surpassing its bag fee income.

Looking ahead, the subcommittee expressed concerns about the potential for airlines to employ algorithms and artificial intelligence to customize fees for individual passengers, raising fears of discriminatory pricing practices. To address these issues, the subcommittee called for greater transparency in fee disclosures, the swift implementation of regulations allowing parents to sit next to their children without incurring extra fees, and the passage of the Airline Passenger Bill of Rights and the Fair Fees Act, which the airline industry has actively lobbied against.