Watchdog: Airline Industry Spends Millions to Block Junk Fee Rule

New lobbying data analysis from government watchdog Accountable.US revealed today that Airlines for America—a trade group representing major airline companies—and six major airlines that took over $40 billion in federal pandemic aid, spent over $20.3 million while lobbying against efforts to rein in junk fees charged by airlines. The report comes as U.S. Department of Transportation Secretary Pete Buttigieg testifies before the House Transportation and Infrastructure Committee. The agency’s newest rules requiring carriers to be transparent about hidden junk fees for bagging, flight change, and cancellation charges, and to provide cash refunds to customers with delayed or canceled flights, is likely to be a flashpoint with Committee members who often put industry interests before those of consumers.

Airlines for America and six of its members highlighted in the report have filed a lawsuit in the Fifth Circuit Court of Appeals in an effort to block the rule requiring airlines to be upfront about pricing. Airlines for America claimed the rule would “greatly confuse customers” and that airlines already disclose these fees to consumers. This comes as the airline industry’s own consultants boasted that ancillary fees, including baggage and seating fees, would reach a global record of $117.9 billion in 2023, far past the previous record of $109.5 billion in 2019.

REPORT HIGHLIGHTS

• Airlines for America has received over $10.5 million in membership dues from the six airlines that joined its suit against the Department of Transportation, according to airlines’ most recent political engagement reports. Meanwhile, it has spent $7.2 million since Q1 2023 while lobbying against numerous pieces of legislation aimed at reining in junk fees, including S. 209 and H.R. 659, the “FAIR Fees Act of 2023” and S. 916 and H.R. 2463, the “Junk Fee Prevention Act.”

• Alaska Airlines, which joined Airlines for America in its lawsuit against DOT, paid $426,600 in membership dues to Airlines for America in 2023. During the COVID-19 pandemic, Alaska Airlines took over $2.2 billion in aid from the federal government to pay its workers’ wages, salaries and benefits.

• American Airlines, which joined Airlines for America in its lawsuit against DOT, has spent over $5.7 million since Q1 2023 while lobbying against both iterations of the FAIR Fees Act and paid over $5.5 million in membership dues to Airlines for America in 2022. American ended up taking over $12.8 billion in aid from the federal government during the COVID-19 pandemic.

• Delta Air Lines has spent over $6.5 million since Q1 2023 while lobbying against the Department of Transportation’s delayed baggage and ancillary fees rule and its ticket refund rule. Meanwhile, Delta paid over $1 million in Airlines for America membership dues in 2023. Delta ultimately received $11.9 billion in aid during the COVID-19 pandemic.

• Hawaiian Airlines has spent $810,000 since Q1 2023 while lobbying against legislation aimed at lowering junk fees and DOT’s ancillary service fees rule. Meanwhile, Hawaiian paid $254,400 in membership dues in 2023 to Airlines for America and received over $673.2 million in COVID aid from the federal government.

• JetBlue Airways, which joined Airlines for America in its lawsuit against DOT, paid over $2.1 million in membership dues in 2022 and received over $2 billion in aid during the pandemic.

• Finally, United Airlines, which joined Airlines for America’s lawsuit, received $10.9 billion in aid from the federal government and paid over $1 million in Airlines for America membership dues in 2023.
  

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