In a fiery Senate Permanent Subcommittee on Investigations (PSI) hearing, Senator Josh Hawley (R-MO) took Spirit and Frontier Airlines to task, accusing them of exploiting passengers through aggressive and inconsistent baggage fee policies. The hearing, chaired by Senator Richard Blumenthal (D-CT), focused on the growing reliance of airlines on ancillary fees to bolster profits at the expense of service quality.
According to the PSI Majority Report, airlines like Spirit and Frontier have increasingly monetized customer inconveniences, particularly through carry-on baggage fees. At the center of the controversy is a program that paid gate agents $10 per bag flagged as a violation of size requirements, incentivizing stricter enforcement.
Frontier Airlines’ representative, Matthew Klein, admitted that the airline suspended the program in September 2024 but acknowledged paying employees millions under the scheme over the past two years. Meanwhile, Spirit’s Robert Schroeter defended the practice as an “incentive” to ensure compliance with airline policies.
Senator Hawley, however, characterized the payments differently, calling them a “bounty” system that preys on ordinary travelers. “This isn’t about ensuring compliance. This is about squeezing every last dollar out of people who are just trying to get to their destination,” Hawley said.
The PSI report highlighted that baggage fees have become a significant revenue stream for airlines. For Spirit and Frontier, two airlines known for their budget-friendly base fares, these fees often represent a significant portion of their profits. However, the enforcement of baggage size policies has drawn widespread criticism for being inconsistent and overly strict.
During the hearing, Hawley pressed Klein and Schroeter to explain how passengers could trust their airlines when enforcement appeared arbitrary and driven by financial incentives. “You’ve turned what should be a straightforward process into a nightmare for families and everyday Americans,” Hawley said.
One particularly contentious point was the revelation that gate agents were incentivized to target bags exceeding size limits by mere centimeters. Hawley accused the airlines of creating unnecessary stress for passengers, particularly those traveling with children or on tight budgets.
Josh Hawley: How much have you paid people to pull out customers who are in line with a bag that’s 2 centimeters too big, Mr. Schroeder?
Robert Schroeter: Well, we recognize this as a hard job, and so therefore, we incentivize them to do that.
Josh Hawley: How much?
Robert Schroeter: It’s $10 per bag.
Josh Hawley: Wow, $10 per bag. I think, Mr. Klein, you and Mr. Schroeder, your airlines cumulatively have spent $26 million paying gate agents between 2022 and 2023 to catch passengers whose bags are a little bit too big. Twenty-six million dollars!
I mean, if people want to know why it’s such a terrible experience to fly, this is news for them today. Your airlines are paying millions of dollars to your employees to harass people who’ve already paid. They’re there in line because they’ve already paid. It’s unbelievable.
Hawley also slammed the airlines for their dynamic pricing schemes, which charge passengers wildly different fees for the same carry-on bag or seat. Schroeder tried to deflect by blaming “routes and demand,” but Hawley wasn’t buying it.
“People on the same flight are paying astronomically different prices,” Hawley pointed out. “How do you determine it? Is it based on personal characteristics? Do you charge women more? Minors? Just people who are suckers? How do you do it?”
Josh Hawley:
Why do you charge some people more? Why is someone on the same flight charged triple or quadruple the amount?Matthew Klein:
The length of the flight matters.Josh Hawley:
But that’s not the data. People on the same flight might get charged radically different prices for one carry-on bag. Why?Matthew Klein:
The $99 charge has been reduced to $79. What happens is we try to get the best price to the right people at the right time.Josh Hawley:
The best people? Who are they?Matthew Klein:
Sorry, let me rephrase. The right price at the right time.Josh Hawley:
Right. But if you’re unlucky and book your flight late, you get screwed. That’s what you’re saying.
Hawley shared his personal experience as a father of three young children, recounting an incident during COVID when a flight attendant threatened to ban his wife from flying because their five-year-old’s mask slipped below his nose.
Josh Hawley:
I’m amazed by the general attitude of all of you here. Flying on your airlines is horrible. It’s a terrible experience. I say this as a father of three young children: nobody enjoys flying on your airlines. It’s a disaster. You charge people fees they know nothing about.You harass them to death. I’ll never forget during COVID when an attendant on your airline threatened my wife because our then-five-year-old son’s mask slipped below his nose.
This flight attendant told my wife that if she didn’t keep that mask over his nose at all points on this four-hour flight, she would personally see that my wife was banned from flying.
This happens over and over to families. It’s terrible. Absolutely terrible. Your attitude today seems to be, “Devil may care.” There’s nothing we can do about it. Well, I think we are going to do something about it.
WATCH:
Between 2022 and 2023, Spirit and Frontier reportedly spent $26 million on incentive programs for gate agents to enforce carry-on baggage policies. Klein admitted that while the program has been paused, the airline sees baggage fees as a critical revenue stream.
Schroeter attempted to justify the program by arguing that it ensures compliance with policies designed to maintain efficiency and fairness. However, his explanation did little to placate lawmakers.
Senator Blumenthal, the subcommittee chair, criticized the airlines’ practices as emblematic of an industry increasingly focused on profits over passenger satisfaction. He pointed out that ancillary fees, including baggage charges, often lack transparency, leaving travelers feeling blindsided.
The PSI report and Hawley’s sharp criticism have amplified public frustration with airlines over ancillary fees. Consumer advocates argue that such fees disproportionately impact low-income travelers and families, undermining the affordability of air travel.
Many passengers have shared stories of being charged excessive fees for minor violations of baggage size rules. These fees, they argue, often exceed the cost of their tickets, making the term “low-cost carrier” misleading.
Both Frontier and Spirit Airlines have defended their fee structures as necessary to keep base fares low and accessible. They argue that ancillary fees allow passengers to pay only for the services they use, rather than subsidizing others.
However, lawmakers like Hawley and Blumenthal contend that these practices exploit passengers and lack adequate oversight. They have called for greater transparency in pricing and fee enforcement to ensure fairness for travelers.
The PSI hearing marks the latest effort by lawmakers to scrutinize the airline industry’s reliance on ancillary fees. While airlines argue that such fees are necessary to remain competitive, critics see them as emblematic of an industry that prioritizes profits over passenger experience.
Senator Hawley has called for legislative action to address what he views as predatory practices, suggesting that Congress consider regulations to cap baggage fees or limit incentive programs like the $10 per bag scheme.
“The American people deserve better than to be treated like walking dollar signs every time they step into an airport,” Hawley said in closing remarks.
The subcommittee’s investigation highlights the broader issue of declining service quality in the airline industry as carriers focus on ancillary revenue. While Spirit and Frontier’s policies have come under particular scrutiny, the hearing raises questions about the practices of the entire industry.
For now, passengers remain caught in the middle, navigating a system where low base fares often come with hidden costs and added stress. Lawmakers like Hawley hope to bring changes that ensure transparency, fairness, and accountability in airline pricing practices.
