Over the last decade, a major source of airline revenue has shifted from actual fares to the ancillary fees. Checked baggage, seat selection and change fees generated USD $109.5 billion globally in 2019.
In the same year, Air Canada reported USD $1.45 billion in ancillary fees.
The practice of charging fees is a source of frustration for passengers and particularly those in the U.S. Congress. In tabling a new bill, several members are attempting to curtail the airline industry’s ability to charge extra fees.
The proposed legislation would see those ancillary fees be “reasonable and proportional” to the airline's cost of providing the service. It would also require U.S. airlines to allow children under the age of 14 to sit with family members at no additional cost.
Sen. Richard Blumenthal, one of the bill’s supporters, accused airlines of “robbery in the skies — taking fees and charges for stuff that costs them nothing.”
According to Yahoo, airlines say that ancillary fees have kept airfares low for passengers who do not want the additional services.
With pandemic far from over, pundits speculate that high ancillary fees are an additional deterrent to travelling.
However, the success of the new bill is uncertain. As reported by Yahoo, similar bills have failed.
Should it pass, it will have a ripple effect on the global industry whereby airlines in other countries will likely follow suit. As one airline does, so do all.
