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Are Airlines Really Trying to Nickel-and-Dime Us to Death?

  • Jan 30
  • 5 min read

Updated: Jan 31

William Davis is a leadership expert, speaker, and mentor dedicated to helping executives, managers, and aspiring leaders develop the skills to lead confidently and successfully.

Executive Contributor William Davis

After being grounded for six years, I recently ventured back into the world of air travel, and let me tell you, it is not the same friendly skies I remember.


Crowd at an airport under a sign listing airline add-on fees like checked bags and seat selection. Mood appears frustrated.

Flying these days feels less like a service and more like a, well, you know.


Remember when you could just buy a ticket, hop on a plane, check your bags, or carry them on, and arrive at your destination without a second thought? Now, it is like navigating a minefield of fees: checked bags, carry-ons, seat assignments, early boarding, and sometimes, believe it or not, even the privilege of sitting next to your own family. The advertised fare, especially on those “discount” sites, might seem like a steal, but by the time you hit that “confirm” button, the final price can be a real shocker.


It is not just the cost that is getting under people’s skin, it is how that cost is exposed, slowly, selectively, and often when it is too late to easily back out. Industry reports show that U.S. airlines have raked in billions in recent years just from baggage and seat selection fees, turning what used to be standard perks into major money-makers. But in the process, something important has been lost: trust.


When fees took over from airline fares


Airlines try to spin these charges as “unbundling” or “consumer choice,” arguing that you only pay for what you use. Sounds good in theory, right? But in reality, it has created a system that relies on sneaky fine print, pressure tactics, and confusing pricing to boost their bottom line.


So, what is behind this shift? Well, travelers tend to sort flights by the lowest price they see upfront. Airlines keep that initial number artificially low and then tack on extra costs later. These additional fees, which used to be complimentary, are now essential to their profits. Just five major U.S. airlines made over $12 billion from seat selection fees alone between 2018 and 2023. Over time, exceptions became the norm, and then the norm became another fee.


The bottom line is that airlines are increasingly making less money from actually flying people and more from charging them for everything around the flight.


Paying more for less?


Baggage fees are a prime example. Remember when checking your bags was just part of flying? Now, it is a major source of revenue, with U.S. airlines collecting around $7 billion in baggage fees in a recent year.


For families, this can be a budget-buster. A round trip with checked bags can easily add hundreds of dollars, sometimes more than the cost of an entire ticket. And gate agents are getting stricter about carry-on rules, forcing travelers to pay hefty fees for bags that used to be free. A U.S. Senate subcommittee even found that some airlines are paying bonuses to employees for spotting bag violations, turning enforcement into a commission-based activity.


And the rules themselves seem to be constantly changing. Recently, there has been tighter enforcement around bag size, weight, and even smart-luggage batteries, leading to more surprise inspections, confiscations, and last-minute purchases at inflated airport prices. To many travelers, it feels less about safety and efficiency and more like a money-grabbing scheme.


Paying just to sit like a normal human being


Seat selection has gone down a similar path. Getting assigned a seat used to be part of the deal. Now, it is another pricing game. Parents are reporting that they have to pay extra just to sit next to their young children. Even standard aisle or window seats often come with added costs if you want to choose them in advance.


And the timing is key. Seat maps usually pop up late in the booking process, after you have already spent time and energy finding a specific flight. Faced with starting all over again, or paying more, many people just give in and pay the fee. It is not like the fee provides a new service, it just restores a basic level of predictability that used to be standard. And me? Being 6'4", I have to pay extra every single flight just to get a “little leg room.”


The rise of “junk fees”


What all these practices have in common is not just the revenue they generate, but how they are perceived. A Senate subcommittee has actually called many airline baggage and seat charges “junk fees,” arguing that they are confusing, excessive, and unfair. Trust goes out the window when the full costs are hidden until late in the game, when enforcement feels random, and when fees keep piling up until a “deal” turns into a total ordeal.


I have spent years watching how people react when systems feel unfair, and I can tell you, once that trust is gone, it is really hard to get it back.


And this is not just happening in the U.S. In Europe and other parts of the world, airlines have jumped on the bandwagon, leaving travelers with fewer and fewer real choices. By now, frequent flyers are increasingly saying that their relationship with certain airlines feels less like a service and more like a purely transactional, and sometimes exploitative, arrangement.


Is there any pushback? What’s next?


Thankfully, regulators are starting to pay attention. Recently, lawmakers have been taking a closer look at airline fees, and the U.S. Department of Transportation is working on faster, more automatic refunds for significant delays and cancellations. New rules have been put in place to tighten disclosure and refund requirements, with potential penalties for airlines that do not comply. Advocates are pushing for limits on charging families to sit together, clearer upfront pricing, and oversight of fees that seem way out of line with the value they provide. But whether these efforts will actually change things, or just lead to more careful wording from the airlines, remains to be seen.


This is about leadership, not just travel


Ultimately, this is not just an airline problem, it is a leadership problem.


True leadership is not about what organizations are allowed to do, but what they choose to do when they have the upper hand. Trust is built on clarity, consistency, and respect, especially when customers do not have many other options.


Sure, squeezing out short-term revenue through confusion and pressure might boost profits, but it damages the relationship with customers. And leadership that sees transparency as optional will eventually pay the price in disengagement, skepticism, and damage to their reputation, as if they needed any more help with that.


Airlines still have a choice. They can keep focusing on fees, or they can step up and bring honesty and predictability back to the customer experience. Because leadership, in any industry, is not about how much you can charge, it is about how you choose to treat people when you do not have to.

 

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Read more from William Davis

William Davis, Leadership Blueprint Consultant

William Davis is an expert in the leadership arena with an impressive 38-year career in senior positions within corporate America. Throughout the decades, William has honed a multifaceted understanding of leadership dynamics, management, and organizational development. Bridging various industries, his tenure is marked by a consistent track record of loyalty, support, guidance, and empathy for his teams. This style allowed him and his teams to successfully deliver numerous large-scale projects that delivered significant stakeholder value.


He advocates for ethical leadership practices and treatment of teammates, believing that these elements are pivotal to nurturing future leaders and staying ahead in a rapidly evolving business landscape.


This article is published in collaboration with Brainz Magazine’s network of global experts, carefully selected to share real, valuable insights.

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