Airlines are hiding the cost of air travel. Now the government wants to help them.
Carolyn DiDonato, a retired nurse from Hamilton, New Jersey, recently booked a flight from Trenton, New Jersey, to Fort Myers, Florida, with Frontier Airlines. She encountered a hidden fee of $23 called a “carrier interface charge,” which was revealed only at the last stage of the booking process. DiDonato felt this fee should have been shown earlier to help her make an informed decision.
Frontier Airlines is not the only airline with hidden fees. Airlines worldwide, especially discount carriers, often advertise low base fares but add extra charges for services like baggage, making the total cost higher than expected.
Congressional Changes:
The FAA Reauthorization Bill being considered by Congress might remove a rule that requires airlines to display airfares including all mandatory taxes and fees. Some experts, like Eric Chaffee, are concerned that this could lead to opportunistic behavior by airlines.
Research Findings:
Research by NetVoucherCodes, a British deals website, revealed that U.S. airlines sometimes hide the true cost of flying even when the full-fare advertising rule is in place. Spirit Airlines was found to have the highest hidden costs, followed by Frontier Airlines and Delta Air Lines. American Airlines was relatively more transparent.
How Airlines Hide Costs:
Airlines often hide costs by separating essential services like seat assignments and luggage from the base fare. This can create the impression of lower fares than what customers end up paying.
Frontier Airlines Example:
For instance, Frontier Airlines offers a low advertised fare, but to get it, you must join their “Discount Den” club, costing $59.99 per year plus a $40 enrollment fee. Then, they present various optional add-ons, like seat assignments for $31 and a carry-on bag for $58. Only later do they reveal the full fare breakdown, including the carrier interface charge.
Criticism and Defense:
Critics argue that airlines should show the full fare upfront, allowing passengers to opt out of extras. Airlines claim passengers prefer to see low base fares first and that this pricing model keeps fares competitive.
Congressional Changes (Again):
The proposed FAA bill could allow airlines to display fares without taxes, mandatory security fees, and airport charges. For example, Frontier Airlines charges just 7 cents for the return flight to Trenton, but the current advertising rule prevents them from advertising this price.
Concerns:
Some experts, like William McGee, believe that rolling back the full-fare advertising rule is an attempt by the airline industry to make airfare shopping more confusing.
In essence, the issue revolves around airlines advertising seemingly low fares while adding various charges later in the booking process, potentially making it harder for passengers to accurately compare prices and make informed decisions.
