Senate Democrats blame the bankrupt airline for overcharging and are pushing for price controls

Democrats on the Senate Permanent Subcommittee on Investigations will hold a hearing today in which they will push for sweeping new regulation of the airline industry and government price controls on the fees airlines charge consumers.

The hearing is part of a larger “junk fees” initiative that President Joe Biden and Democrats have launched to distract from inflation and high prices caused by Democratic overspending.

These Democratic efforts to intervene in the market are not about cutting costs or improving the customer experience, but are a political distraction from failed Democratic policies such as the Biden administration’s failure to address the air traffic controller shortage , which leads to flight delays and cancellations.

Sen. Richard Blumenthal (D-Conn.), the chairman of the Senate Permanent Subcommittee on Investigations (PSI), has accused airlines of treating their customers “like walking piggy banks” because they offer their customers seat upgrades at a price which customers willingly pay.

Statements like Blumenthal’s are patently ridiculous, considering that one of the airlines that planned to testify before the subcommittee recently filed for bankruptcy. Spirit Airlines filed for bankruptcy protection in November, citing the Biden Justice Department’s blocking of its merger with JetBlue as the root cause. Here too, government intervention and over-regulation of the aviation industry reduce competition and harm consumers.

In fact, eliminating voluntary baggage and seat fees would lead to an increase in ticket prices. Airlines are able to offer cheaper seats overall by charging customers for unnecessary but valuable upgrades, such as a customer-preferred window or aisle seat or a seat further up the plane. The ability of airlines to differentiate the fees they charge allows a customer traveling with only a carry-on bag to pay less than someone checking a bag.

Overall, the unbundling of products and the ability for customers to pay for what they value has led to historic lows in airfares. Between 1995 and 2023, the average airfare fell from $584 to $382, a decrease of 35%. This makes flying more affordable than before. Airfares are one of the few things that are LESS expensive today than they were before the pandemic.

Americans for Tax Reform opposes efforts by Democrats and the Biden administration to increase government regulation of the airline industry and for the government to micromanage fees that airlines charge for services that customers can voluntarily pay for.