US senators grill airline officials about fees for seats and checked bags

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US senators grill airline officials about fees for seats and checked bags

2024-12-05 07:22 Last Updated At：07:31

Members of a U.S. Senate subcommittee took aim at airline executives Wednesday for using an expanding menu of fees to charge customers for early boarding, better seats and other comforts that used to be part of the ticket price.

Sen. Richard Blumenthal, D-Conn., said he thinks the federal government should review and perhaps fine the airlines for their use of what he called junk fees.

Blumenthal, the chairman of the Senate Permanent Subcommittee on Investigations, said seat fees were pure profit for the airlines because they don't have to create new seats or incur other expenses by allowing customers to pick where to sit.

Some senators expressed frustration during Wednesday's hearing when airline executives could not explain how they set the amount of various fees. They said the vagaries of airline pricing make it hard for consumers to budget for trips.

“We’re all captives on your airplanes at a certain point. You just say, ‘You want to pick seat? We’re just going to charge you some random amount more,’” Sen. Maggie Hassan, D-N.H., said. “It would be good if you guys could be transparent about what you do and why.”

The fees don't seem to be discouraging anybody. Americans are flying more than ever.

The Transportation Security Administration reported screening nearly 3.1 million travelers at airports around the country on Sunday, a new single-day record. The 15 busiest days in TSA history have all occurred this year, with traffic at airport checkpoints up 5% over 2023.

Airline executives bristle at the term “junk fees,” and argue they are merely giving consumers what they want: choices.

“Our customers who prioritize affordability have the option to choose a lower-fare product and, in doing so, opt out of paying for additional services that they do not want,” Andrew Nocella, the chief commercial officer of United Airlines, said in testimony prepared for the panel's hearing. “But we also have customers who seek more services, and they retain the ability to choose the services they value, for an incremental fee, like a seat with extra legroom or checked bags.”

Airlines have been adding fees on desirable seats to take advantage of increasing demand.

The airline executives took offense at the charge that they are gouging travelers.

“It has never been more affordable to fly," said Steve Johnson, chief strategy officer for American Airlines.

Transportation Department figures indicate that airfares have fallen by about one-third since 2000 when taking inflation into account. However, those figures do not include fees.

Senators said fees should be described clearly during the ticket-buying process. The executives said their airlines do that.

Some subcommittee members also criticized airlines for the way they enforce fees.

Sen. Josh Hawley, R-Mo., sparred with executives of Frontier Airlines and Spirit Airlines, which paid employees $26 million in bonuses for spotting customers whose carry-on bags were too big to fit under a seat. The passengers were forced to pay a fee — up to $77 on Spirit and $99 on Frontier — to use an overhead bin.

“If people want to know why it’s such a terrible experience to fly, this is news for them today,” Hawley told the airlines executives Wednesday. “Your airlines are paying millions of dollars to your employees to harass people who have already paid!”

Frontier Chief Commercial Officer Robert Schroeter and his counterpart at Spirit, Matthew Klein, said ensuring that people follow the rules was a matter of fairness to all passengers.

When Hawley asked why bag fees may vary from one customer to another, Schroeter said Frontier must cover its costs.

“Overall, our job is to generate the most revenue we can so we can keep profitable as an airline,” he said.

U.S. airlines raised more than $7 billion from fees on checked bags last year, with American Airlines and United Airlines leading the pack. They scooped up another $1 billion in ticket-change and cancellation fees, although that was about one-third of what they raised before the coronavirus pandemic, when the biggest airlines dropped change fees.

Exact figures on other types of fees are hard to determine, but the Senate panel reported last week that United, American, Delta Air Lines, Frontier and Spirit collected a combined total of more than $12 billion in seat fees between 2018 and 2023. That included charges for things such as more legroom or an aisle seat near the front of the plane.

Airline fees have been a frequent target of criticism by the Biden administration, all the way up to President Joe Biden.

A Transportation Department rule that took effect in October requires airlines to make automatic cash refunds for tickets and fees when flights are canceled.

The airline industry is suing to block another regulation requiring more prominent disclosure of baggage and cancellation fees. An appeals court has blocked that rule, and its fate is uncertain under President-elect Donald Trump. Blumenthal asked the five executives to drop the lawsuit. None agreed to do so.

The airline industry and Transportation Secretary Pete Buttigieg have continued to fight over fees and other regulations, even after the November election.

Police hunt for UnitedHealthcare CEO's masked killer after 'brazen, targeted' attack on NYC street

2024-12-05 07:27 Last Updated At：07:30

NEW YORK (AP) — A gunman killed UnitedHealthcare’s CEO on Wednesday in a “brazen, targeted attack” outside a Manhattan hotel where the health insurer was holding its investor conference, police said, setting off a massive search for the fleeing assailant hours before the annual Rockefeller Center Christmas tree lighting nearby.

Brian Thompson, 50, was shot around 6:45 a.m. as he walked alone to the New York Hilton Midtown from a nearby hotel, police said. The shooter appeared to be “lying in wait for several minutes” before approaching Thompson from behind and opening fire, New York City Police Commissioner Jessica Tisch said. Police had not yet established a motive.

“Many people passed the suspect, but he appeared to wait for his intended target,” Tisch said, adding that the shooting "does not appear to be a random act of violence.”

Surveillance video reviewed by investigators shows someone emerging from behind a parked car, pointing a gun at Thompson’s back, then firing multiple times from several feet away. The gunman continues firing, interrupted by a brief gun jam, as Thompson stumbles forward and falls to the sidewalk. He then walks past Thompson and out of the frame.

“From watching the video, it does seem that he’s proficient in the use of firearms as he was able to clear the malfunctions pretty quickly,” NYPD Chief of Detectives Joseph Kenny said.

Thompson was shot at least once in the back and once in the calf, Tisch said.

The shooter, who wore a jacket, face mask and large backpack, fled through Midtown on foot before pedaling an electric bike into Central Park a few blocks away, police said. The assailant remained at large Wednesday afternoon, sparking a search that included police drones, helicopters and dogs.

“Brian was a highly respected colleague and friend to all who worked with him,” the insurer’s Minnetonka, Minnesota-based parent company, UnitedHealth Group Inc., said in a statement. "We are working closely with the New York Police Department and ask for your patience and understanding during this difficult time.”

Police issued a poster showing a surveillance image of the man pointing what appeared to be a gun and another image that appeared to show the same person on a bicycle. Minutes before the shooting, he stopped at a nearby Starbucks, according to additional surveillance photos released by police on Wednesday afternoon. They offered a reward of up to $10,000 for information leading to an arrest and conviction.

Thompson’s wife, Paulette Thompson, told NBC News that he told her “there were some people that had been threatening him.” She didn’t have details but suggested the threats may have involved issues with insurance coverage.

Eric Werner, the police chief in the Minneapolis suburb where Thompson lived, said his department had not received any reports of threats against the executive.

The killing shook a part of New York City that's normally quiet at that hour, happening about four blocks from where tens of thousands of people were set to gather for Wednesday night’s tree lighting. Police promised extra security for the event.

The hotel is also a short walk from other tourist sites, including the Museum of Modern Art and Radio City Music Hall, and is often dense with office workers and visitors on weekday mornings. Many security cameras are nearby.

“We’re encouraging New Yorkers to go about their daily lives and their daily business but to be alert,” NYPD Chief of Department Jeffrey Maddrey said.

Investigators recovered several 9 mm shell casings from outside the hotel and a cellphone from the alleyway through which the shooter fled. They were also searching Thompson's hotel room, interviewing his UnitedHealthcare colleagues and reviewing his social media, Kenny said.

Police initially said the shooter rode into Central Park on a bicycle from the city’s bike-share program, CitiBike. But a spokesperson for the program’s operator, Lyft, said police officials informed the company Wednesday afternoon that the bike was not from the CitiBike fleet.

Health care giant UnitedHealth Group was holding its annual meeting with investors to update Wall Street on the company's direction and expectations for the coming year. The company ended the conference early in the wake of Thompson's death.

“I’m afraid that we — some of you may know we’re dealing with a very serious medical situation with one of our team members,” a company official told attendees, according to a transcript. “And as a result, I’m afraid we’re going to have to bring to a close the event today. ... I’m sure you’ll understand.”

Thompson, a father of two sons, had been with the company since 2004 and served as CEO for more than three years.

UnitedHealthcare is the largest provider of Medicare Advantage plans in the U.S. and manages health insurance coverage for employers and state-and federally funded Medicaid programs.

Minnesota Gov. Tim Walz posted on the social platform X that the state is “sending our prayers to Brian’s family and the UnitedHealthcare team.”

“This is horrifying news and a terrible loss for the business and health care community in Minnesota,” the Democrat wrote.

Associated Press writers Tom Murphy in Indianapolis, Steve Karnowski in St. Paul, Minnesota, and Anthony Izaguirre in Albany, New York, contributed to this story.