US and overseas airlines should be required to disclose all fees to ensure passengers, are fully informed about how much their tickets costs, congressional investigators said on Wednesday.
The Government Accountability Office (GAO), the investigative arm of Congress, said in a report that airlines made USD$1.3 billion in baggage and other fees in the first quarter of 2010, up 13 percent from the year-ago period.
Revenue from ancillary fees has grown from less than 1 percent of operating revenues in 2007 to more than 4 percent last year, or USD$7.8 billion, industry figures showed.
Airlines largely compete on base fares, which are often compared by consumers before making a ticket purchase. Airlines must include some fees, including fuel surcharges, in their advertised fare.
Checked-bag fees must be disclosed separately at the time of ticket purchase, a point that can cause confusion on pricing, the GAO said. Moreover, there is no disclosure requirement for other optional fees, such as charges for pillows and blankets, seat selection, early boarding and food.
"As a result, customers using online travel agencies and traditional or corporate travel agents, which together sell 60 percent of all airline tickets, cannot readily obtain and compare information on complete trip prices," the GAO said.
Pending legislation would require more disclosure, but prospects for passage are unclear.
Representative Jerry Costello, chairman of the aviation subcommittee in the House of Representatives, said at a hearing on Wednesday that greater transparency should be the goal of industry.
"So people understand and know what they're getting, and they can compare one price to another and (know) what their options are," Costello said.

(Reuters)

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