Sen. Richard Blumenthal (D-Conn.) is leading a charge against what he calls “hidden and runaway” fuel surcharges and airline fees being shoveled on to consumers by the airline industry despite plummeting fuel costs.
“It is time for (Department of Transportation) to crack down on continued unfair and deceptive charges by airlines,” Blumenthal wrote in Feb. 22 letter to Anthony Foxx, Secretary of U.S. Department of Transportation.
In his letter, Blumenthal said that according to the International Air Transport Association, airlines are expected to reap an estimated $33 billion in profits in 2016 ””nearly double the $17.3 billion in profits the industry collected in 2014.
“Yet the price of an airline ticket remains sky-high and out of reach for far too many Americans,” Blumenthal said.
In his letter Blumenthal called on the department to investigate the way airlines calculate surcharges and fees, which he claims can nearly double passenger fares when consumers seek to redeem frequent flier miles.
“There have been reports of consumers seeking to redeem loyalty miles only to be hit with hundreds of dollars in confusing charges at check out,” he said.
According to Blumenthal”™s letter, in 2012, the Department of Transportation prohibited airlines from imposing additional “fuel charges” unless they could be directly linked to the additional cost of fuel. Not coincidentally, as fuel prices declined, most airlines dropped “fuel charges” and began assessing consumers other vaguely worded charges such as “international/domestic surcharges”, and “carrier imposed charges,” which seemingly have no relation to any additional costs borne by the airlines.
“These seem to be the same bogus charges, simply by a different name,” he said. “This anti-consumer practice shrouds the true cost of airfares and can deceive consumers searching for the best deals.”
Blumenthal referred specifically to British Airways and Delta Airlines and the vague language they use to explain the reasoning behind their surcharges:
Delta tells consumers, “For some international itineraries, Delta has carrier-imposed surcharges stated separately from the base fare, which may be up to $650* each way.” (The asterisk provided by Delta to indicate an “approximate amount,” not a maximum.)
“By failing to define the surcharge, airlines appear to escape any responsibility for explaining how they came up with these amounts, possibly padding their profits by deceiving consumers,” Blumenthal said.
As a member of the Senate Commerce, Science, and Transportation Committee, the panel charged with overseeing the aviation industry and consumer protection, Blumenthal said he was eager to ensure that airline passengers receive reliable service at a fair and reasonable price and plans to make the issue a key priority as the committee crafts a long-term measure reauthorizing aviation programs.
