Plane tickets may become more expensive and less available thanks to a Biden administration policy.
During President Biden’s Feb. 7 State of the Union address, the president touted an upcoming proposal to ban companies from imposing “junk” fees.
The plan would force airlines to reimburse all travelers for canceled and delayed flights.
“My administration is also taking on ‘junk’ fees, those hidden surcharges too many businesses use to make you pay more,” Biden said during the address.
“For example, we’re making airlines show you the full ticket price upfront and refund your money if your flight is cancelled or delayed.”
According to one prominent airline trade association, Airlines for America, the result of such a policy would be an increase in overall prices and a more limited availability of flights. When asked about the policy, Airlines for America sent The Western Journal a statement revealing as much.
(The following quote was first included in an exclusive report for The Western Journal’s subscribers. The report broke down the many ways Joe Biden’ State of the Union promises would cost Americans more money. Consider subscribing to The Western Journal to see more content like this).
“The White House proposals are short-sighted and would inevitably drive-up costs and reduce choices for the consumer,” the statement read.
“The federal government should be focused on 21st century policies and procedures that drive our nation’s aviation system forward, rather than making efforts that threaten to reduce access and affordability for consumers.”
Joe Biden promised the move to force airlines to reimburse tickets would be included in the upcoming “Junk Fee Prevention Act.”
Specifically, the plan targets four categories, according to an official White House fact sheet.
Those categories are online concerts, sporting events and other entertainment ticket fees; airline fees for specific seating arrangements, including pairing children with adult family members; cancellation fees related to phone, television and internet services and “surprise resort and destination fees.”
During the president’s State of the Union speech, Biden also promised to target credit card companies.
“We’ve reduced exorbitant bank overdraft fees, saving consumers more than $1 billion a year,” Biden said. “We’re cutting credit card late fees by 75 percent, from $30 to $8.”
Much like airfares, credit costs may very well go up while the availability of credit becomes more sparse if such legislation is passed.
In late January, a group of lenders sent a letter to the Biden administration explaining as much.
It may very well be the case that the “Junk Fee Prevention Act” will prevent some customers from being hit with surprise fees.
However, as a result, in all industries affected, the price of all products may go up for all consumers.
According to a Morning Consult survey conducted from Feb. 8 to Feb. 10, majorities among U.S. Democrats (80 percent), Republicans (73 percent) and independents (71 percent) “strongly” or “somewhat” support a ban of “junk” fees.
This article appeared originally on The Western Journal.