So-Called 'Junk Fees' Actually Save You Money: Ticket Prices May Soon Go Up if Dems Take Them Away
The Senate Permanent Subcommittee on Investigations recently held a hearing on airline fees associated with carry-on-baggage, seat choice, and other amenities. The Capitol Hill showdown followed the release of a new Senate report showing how major U.S. airlines made a combined $12 billion between 2018 and 2023 from this flexible pricing structure.
Democratic Sen. Richard Blumenthalof Connecticut — chairman of the subcommittee — argued the ancillary charges are harming travelers. Why? Because “an increasing share of airline revenue is coming from these fees.” But contrary to the senator’s claim, the evolving payment structure for flying is a plus for passengers.
From the consumer perspective, policymakers should understand that unbundling airline ticket costs has made travel more affordable. Rather than being stuck paying for airfare that includes all the bells and whistles, more cost-conscious travelers have the option to pay for a cheaper alternative.
Taken to the extreme, should first class tickets be the only option available to air travelers? Of course not.
In nearly every other sector of the U.S. economy, consumers prefer more choice rather than less. And Uncle Sam doesn’t seem particularly concerned with regulating these other instances.
At sporting events, for example, Americans pay extra for certain seats or to access VIP food and drink areas. Families often buy premium passes to skip lines or enjoy a unique character meet-and-greet experience at Disney World. And many people pay an extra $3 per month to watch ad-free content on Amazon Prime.
Modern air travel that combines robust competition with an a la carte experience for passengers has made flying more affordable and accessible to a growing number of Americans. Because the cost to fly has fallen by roughly half over the past four-decades, nearly 90 percent of Americans have flown on commercial airlines. That’s a jump of roughly 20 percent since 1988.
Rather than increasingly pushing passengers into a one-size-fits-all travel experience, the federal government should focus on getting its own house in order to improve air travel.
For one, the Federal Aviation Administration needs to fast track infrastructure modernization projects. Air traffic control systems are quickly aging and becoming unreliable. According to a recent Government Accountability Office report, 51 of the 138 air traffic control systems are “unsustainable.”
Did you know that air traffic controllers still manually move around paper strips to keep track of airplanes? In the age of iPhones and artificial intelligence, relying on paper to monitor jumbo jets is like watching a movie on a VCR rather than streaming it on Netflix or Hulu.
Old infrastructure isn’t the only problem plaguing the government’s aviation responsibilities.
Reporting suggests the FAA is short 3,000 air traffic controllers. As a result, flights are being delayed or canceled — leaving passengers to deal with the mess. In fact, the problem is so bad that prior to the busy Thanksgiving travel period, the federal government announced it would likely need to slow down air traffic because of the staffing gap.
Negativity from the Senate Permanent Subcommittee on Investigations around the cost structure of flying is misplaced. Flexible pricing is not a defect but rather a perk of modern air travel that benefits consumers. Policymakers should take note.
Jackson Shedelbower is the executive director of the Center for Transportation Policy.
The views expressed in this opinion article are those of their author and are not necessarily either shared or endorsed by the owners of this website. If you are interested in contributing an Op-Ed to The Western Journal, you can learn about our submission guidelines and process here.
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