AIRLINE PASSENGERS AS PIGGYBANKS

Taken a flight lately?  If so, you’re not alone.  The Sunday after Thanksgiving saw 3.1 million passengers screened by TSA at US airports, a new record. 

For one airline, United, that Sunday was its most profitable day ever… 25% higher than any day in its history. Delays were few, but passengers were still not happy.  Not because of the cramped seating or lousy food, but because of “junk fees”.

“You treat your customers like walking piggy banks,” US Senator Richard Blumenthal (D-CT) told airline CEOs in Senate hearings this past week. His biggest complaint, the opaque cost of flying:  You buy a ticket for a certain price and then come the add-ons. 

Need to change a reservation?  That will cost you up to $119 on now-bankrupt Spirit Airlines.

Seat selection, which costs up to $45, brought US airlines $3 billion in 2023. 

Checked baggage, up to $99 each.  Some even charge for carry-on bags… up to $99 if you wait ‘til the last minute before boarding, especially if you’re flying on a cheap ticket.  Frontier Airlines’ boss has called the carry-on crowd “shoplifters” for trying to evade his checked bag fees.

During the US Senate hearing it was also revealed that some airlines (Frontier and Spirit) actually give their gate agents bonuses ($10) for catching passengers with oversized carry-ons.

One airline (Ryanair) once proposed charging customers to use its bathrooms inflight hoping to eliminate bathrooms and add more seats.

Want to use a credit card to pay for your ticket? Some international carriers will hit you with a 3% fee.  US no-frills airline Allegiant calls that a “convenience fee”.

These airlines make Ticketmaster’s service fee, order processing fee and delivery fee look like a charity:  How can you plan a trip when you don’t know what it will really cost? 

US Senator Richard Hawley (R-MO) said: "Flying on your airlines is horrible. It’s a terrible experience. I mean, I say this as a father of three young children, but I can tell you, nobody enjoys flying on your airlines. You charge people fees that they know nothing about. You harass them to death."

This is what happens in an oligopoly.  While the US used to have scores of airlines competing against each other on schedules, deregulation’s mergers have left us today with just four major carriers representing 80% of all traffic:  American, Southwest, Delta and United.

These airlines dominate the major airports, stifling competition. For example, United controls 73% of all landing slots at Newark Liberty Airport and Delta accounts for 50% of all traffic at LaGuardia and 47% at JFK.

Starting a new carrier, especially at these major hubs, is nearly impossible.  That’s why Connecticut-based Avelo hubs at New Haven’s Tweed airport and Breeze Airlines calls Bradley Airport its home.

So if you have to fly Oligopoly Airlines, check the fine print before you book.  If in doubt about the all-in costs, call the airline to drill down.