Congressmen Cohen, Garcia and Khanna and Senators Markey and Blumenthal Reintroduce FAIR Fees Act

WASHINGTON -- Congressmen Steve Cohen (TN-09), Jesús “Chuy” García (IL-04) and Ro Khanna (CA-17) and Senators Edward J. Markey (D-Massachusetts) and Richard Blumenthal (D-Connecticut) today reintroduced the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act. This bicameral legislation would prohibit airlines from charging fees – including bag, seating, cancellation, and change fees – that are not reasonable or proportional to the costs of the services actually provided. The bill would also direct the Department of Transportation to review any other fees imposed by airlines, as well as ensure that children can sit together with their family members on flights at no additional charge.

Too often, airlines blindside travelers with exorbitant charges at check-in caused by unexpected fees for basic aviation services. This price gouging has grown exponentially as a business practice over the last decade. In 2019 – the last full year before the coronavirus pandemic disrupted air travel – airlines worldwide collected $109.5 billion in ancillary fee revenue, up nearly fivefold from $22.6 billion in 2010. That same year, U.S. domestic airlines collected $5.8 billion in baggage and $2.8 billion in ticket reservation fees alone.

Congressman Cohen was appointed ranking member of the Transportation and Infrastructure Committee’s Aviation Subcommittee earlier today.

“Air travelers tell me all the time about unreasonable fees for schedule changes or baggage fees that appear out of line with the likely true cost to the airlines for providing these services. It’s well past time that we have an objective assessment of those fees with the expectation that they will be either justified as reasonable or, as is more likely, reduced or eliminated. The flying public deserves nothing less,” said Representative Cohen.

“It’s no secret that airlines are pinching passengers’ pocketbooks with ridiculous fees—from charging travelers extra for a carry-on bag to forcing parents to pay to sit with their children—at the same time that they’re leaving their passengers stranded. It’s unacceptable,” said Senator Markey. “As hidden fees soar sky high, consumers are rightfully outraged at airlines’ deceptive pricing practices and poor performance. My FAIR Fees Act would ground the airlines’ corporate price gouging and protect passengers from unreasonable fees. I thank my colleagues for their partnership as we hold companies accountable to their customers, and I look forward to advancing important consumer protections in this year’s reauthorization of the Federal Aviation Administration.”

“This legislation will ensure fliers have the essential consumer protections they deserve,” said Senator Blumenthal. “The Southwest Airlines debacle is just the latest example of why we urgently need stronger passenger protections, as air travel has become more stressful, unpredictable, and uncomfortable for fliers. This legislation will establish clear, enforceable rules for airlines to follow, putting consumers first and restoring sanity to the skies.”

“Airline mergers are the cause of market concentration and promote monopolistic practices in the industry. They hurt consumers through frequent price gouging and cancellations. Travelers, particularly working class families, should not be forced to pay exorbitant prices so wealthy corporations can continue to rake in record profits,” said Congressman García.  “I’m reintroducing the FAIR Fees Act with Representatives Cohen and Khanna, and Senator Markey because we must do more to protect consumers from abusive practices by the airline companies.”

“It’s time to rein in the excesses of the airline industry and protect travelers,” said Representative Khanna. “Americans are being charged outrageous bag, change, and cancellation fees. The FAIR Fees Act would take action against this outrageous price gouging by ensuring that all airline fees correspond to the actual cost to the airline. Let’s get this passed, so that everyone can travel for a fair price.”

The FAIR Fees Act is endorsed by the American Economic Liberties Project, National Consumers League, Consumer Federation of America, Consumer Action, Travelers United, and the Business Travel Coalition.

Endorsements: 

“Despite the airlines’ dismal performance over the past year, they continue to nickel-and-dime passengers with higher and higher junk fees,” said William J. McGee, Senior Fellow for Aviation & Travel at American Economic Liberties Project. “We applaud Senators Markey and Blumenthal and Congressmen Cohen and Garcia for continuing the fight against unreasonable and often opaque fees that deceptively drive up the price of airline travel. And many fees should have been eliminated long ago, such as forcing families with young kids to pay extra to sit together."

“Airlines should not be in the business of nickel-and-diming passengers to death,” said Sally Greenberg, Executive Director of the National Consumers League. “Beyond the frustration this causes for consumers, the billions that airlines collect in add-on fees inhibits competition and allows the industry to exploit a gigantic tax loophole. The FAIR Fees Act is exactly what is needed to protect passengers, promote competition, and ensure that the airlines pay their fair share towards maintaining our nation’s air travel infrastructure.”

“It is about time that ancillary fees are proportional to the true costs of providing the service. It is unfortunate that in many cases the amounts charged for ancillary services exceed the costs for those services,” said Charles Leocha, President of Travelers United. “Flight changes and cancellations as well as seat assignments can be made with a simple keystroke. However, the true opportunity costs vary depending on when the flight or seat change is made before the scheduled flight. These variable costs are nowhere to be found in the current fee structures. This bill will ensure these fees will be fair.”

“Carriers that impost all sorts of fees on travelers must be held to a standard that requires fees to bear a ‘reasonable and proportional’ relationship to their costs,” said Ruth Susswein, Consumer Action’s Director of Consumer Protection. “Otherwise we’re talking unfair and deceptive practices.”

“There are at least 10 striking examples of unfair and deceptive airline practices that drive the need to outlaw fees that are not correlated to the costs incurred by airlines,” said Business Travel Coalition chairman Kevin Mitchell. “An example is when an airline charges $200 for handling a ticket change when an airline's cost for doing so ranges from $25 to $35 dollars.” 

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