CNN
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Airlines have pocketed billions of dollars in so-called “junk fees” by charging customers extra fees to choose a seat or carry luggage, according to a Senate subcommittee report released Tuesday.

According to the report, some airlines have even paid employees cash incentives to identify customers trying to avoid carry-on baggage fees.

From 2018 to 2023, five U.S. airlines earned more than $12 billion from seat selection fees alone, an “unbundled” fee that used to be included in the airline ticket.

The Senate Permanent Subcommittee on Investigations report said that in 2023, United Airlines charged up to $319 for a seat with extra legroom, Spirit Airlines charged up to $299, Delta Air Lines charged up to $264. dollars and Frontier Airlines charged $141 and American Airlines charged up to $140.

“Seat fees have become more expensive and more extensive,” it said. “These five airlines charge passengers additional fees for extra legroom, aisle and window seats, or even to reserve a seat in advance, forcing parents with minor children to pay to sit together.”

The 55-page report is being presented by the outgoing Biden administration a triumph for action against airlines by expanding consumer protection. Earlier this month, the Transportation Department announced it would begin enforcing a new rule requiring airlines to provide automatic refunds to passengers for canceled or significantly delayed flights.

The report details the measures some airlines have taken to ensure passengers pay for carry-on luggage. It said ultra-low-cost carriers Frontier and Spirit spent $26 million in incentives in 2022 and 2023 to incentivize agents to “catch passengers who allegedly failed to comply with the airline’s baggage policies.” Airlines hold, often forcing these passengers to pay a baggage fee or miss their flight.”

“Border staff can earn up to $10 for each piece of baggage a passenger checks at the gate,” the report said. “A Frontier official told the subcommittee that enforcing baggage policies is necessary because the airline does not want customers to carry more or ‘steal’ from the airline.”

Frontier confirmed the practice in a statement to CNN. “The gate agent commission is intended solely to incentivize our team members to ensure compliance with bag size requirements so that all customers are treated equally and fairly, including the majority who abide by the rules,” the statement said

Spirit Airlines did not immediately respond to a request for comment.

The report also said some airlines appear to be avoiding federal taxes by labeling some fees as “non-taxable fees,” penalizing airlines like Delta and American that don’t use the practice.

Industry lobbying group Airlines for America told CNN in a statement that its “members comply with all laws and regulations, including those regarding taxes and fees.”

Frontier defended unbundled fees as a way to make air travel more affordable.

“Frontier works every day to improve consumer access to affordable air travel and ensure the company delivers the best possible value to its customers. “Our unbundled service model has democratized air travel and empowered millions of individuals, families and small businesses who otherwise would not or could not afford to travel,” the statement said.

Airlines for America’s statement reflected that sentiment. “The subcommittee clearly lacks an appreciation for the fact that air travel is now democratized and allows Americans of all income levels to fly. Because of the revolution in air travel, nearly ninety percent of Americans are now flying. That’s because Americans have the freedom to pay for the services they want and go without the ones they don’t.”

Spirit Airlines said in a statement that it disagreed with much of the report and was “transparent about our products and pricing, our airport policies ensure guests are treated fairly and equally, and we comply with all tax laws and regulations.” .

“Junk fees” have been in the Biden administration’s crosshairs. In August, the Transportation Department proposed rules that would eliminate seat-selection fees for families who want to sit together.

“I know that some airline CEOs have expressed hope that the next administration will be less passenger-friendly and more business-friendly than this administration,” Transportation Secretary Pete Buttigieg said at a news conference last week. “The passenger protection measures we have introduced rightly enjoy broad public and bipartisan support.”

The Senate Permanent Subcommittee on Investigations says it will hold a hearing next week with officials from American, Delta, United, Frontier and Spirit.