Senators question if Frontier, Spirit Airlines are manipulating seat pricing (updated)
22/01/2025 23:37
(Adds Frontier declining comment, Spirit not immediately
comment, more details from letter in paragraphs 3-11)
By David Shepardson
WASHINGTON, Jan 22 (Reuters) - Three U.S. senators said
they want Frontier Airlines ULCC.O and Spirit Airlines
SAVEQ.PK to disclose whether they are manipulating seat fees
by using customers' personal information to charge different
fees to passengers on the same flight.
Senators Maggie Hassan, Josh Hawley and Richard Blumenthal
cited on Wednesday the carriers' decision to ask for personal
information before revealing seat fees, adding the airlines were
apparently "using customers' personal information to charge
different seat fees to passengers on the same flight" despite
having the same fare. The senators said the carriers could be
using consumers' ZIP codes, search history or other information
"to influence pricing."
In a letter, they called on the airlines to stop collecting
personal information before showing fees, saying it undermines
consumers' confidence, reduces competition and prevents
customers from accurately comparing prices."
Frontier declined to comment. Spirit did not respond to a
request for comment. The senators also wrote to Amadeus-owned
AMA.MC software firm Navitaire asking if the airlines had
asked it collect data and use it in their pricing algorithms.
The company did not immediately comment.
Last month, the bipartisan group of senators took part in a
hearing that harshly criticized rising airline fees for luggage
and seat assignments, calling the fees unfair and noting how
different customers are charged differently.
"This is Russian roulette," Hawley said. "Nobody enjoys
flying on your airlines. It's a disaster. ... It's absolutely
terrible."
A report disclosed that five U.S. airlines, including
Frontier and Spirit, collectively earned $12.4 billion in
revenue from seat fees between 2018 and 2023.
Airlines say the fees are about customer choice but
acknowledge the charges are a key part of their revenue
structure as they face rising costs.
A year-long investigation by Blumenthal's panel found that
carriers are increasingly using algorithms to set fees.
Frontier and Spirit paid $26 million to gate agents and
others between 2022 and 2023 to catch passengers not paying the
airline's required bag fees or having oversized items, the
committee said.
Last year, U.S. airlines sued to block the U.S.
Transportation Department's new rule on upfront fee disclosure.
(Reporting by David Shepardson; Editing by Jamie Freed)
((David.Shepardson@thomsonreuters.com; 2028988324;))