Jul 02, 2024
PHOENIX, Ariz. (CBS NEWS) - Airlines have been making big money from so-called junk fees -- charging for things like extra bags. The Biden Administration has been cracking down on them and the Department of Transportation said new transparency rules could save passengers more than half a billion dollars a year. Daryl Plunkett needed to change his Spirit Airlines flight from Fort Lauderdale to Atlanta. He was worried the ultra-low-cost airline would hit him with a fee. "They were flexible. I actually got a credit back. So, I mean, I'll give them their kudos on that," said Plunkett. Spirit, known for its a la carte or pay-for-everything approach to travel, just dropped its change and cancel fees. It also upped the weight for checked bags to the industry standard of 50 lbs., as it looks to win back flyers. "We've been evaluating this for quite some time, so it's not something that we've just decided to do overnight. And, uh, quite frankly, it's something that our customers want," said Matt Klein, Spirit's Chief Commercial Officer. "What we've seen over time is less people are actually flying on spirit. So we believe the changes we're making. It's not just about the individual who's already flying on our aircraft. It's about attracting new customers." Spirit Airlines ends cancellation and change fees The move comes as bigger airlines are fighting for Spirit's cost-conscious flyers. Its competitor Frontier dropped most change and cancel fees while shifting its focus to bundled services. It also follows the Department of Transportation announcing new regulations aimed at making airline fees more transparent. "Anytime an airline drops those fees altogether. We think that's something consumers will welcome," said Transportation Secretary Pete Buttigieg. Those change and cancel fees generated $150M for Spirit last year. Klein is betting dropping them now will help put the airline on a path of profitability. "Everything we're looking to do right now is to make the guest experience more seamless and give flexibility to our guests," said Klein. "Right now spirit and frontier are fighting--They are fighting to stay in business," said Henry Hartveldt, an airline industry analyst. "They are reacting to the changes that larger airlines have made. They've seen that that could be a reason why people have avoided flying them. And they're saying, okay, let's take away that obstacle." Hartveldt said this is good for consumers as the busiest summer travel season ever has hit its peak.
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