American Airlines would drop consumer services like ticket changes if Congress tightens regulations on the industry, the carrier’s top executive said Wednesday.
The shift is possible under a bill being negotiated to fund the Federal Aviation Administration. While House and Senate versions of the measure both contain provisions to which the airline industry objects, carriers have pushed back most aggressively against restrictions to add-on fees for services such as checking bags and selecting seats.
The House passed a bill funding the agency earlier this year, but the Senate measure has yet to advance to the chamber floor, and lawmakers are trying to negotiate a compromise before existing appropriations expire on Sept. 30, aides and lobbyists say.
Ticketing changes, which can cost more than $200 in addition to the price of the new flight, would “go away,” Chief Executive Officer Doug Parker told reporters at an event hosted by lobbying group Airlines for America. “That’s where I think we would end up in this case. I think we’d end up with non-refundable tickets.”
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Such a change would likely be tremendously unpopular with airline customers, many of whom already complain about higher prices after years of consolidation in the industry as well as a cumbersome check-in process for flights. Whether fliers would blame airlines or Congress for the shift is less clear.
In the meantime, American Airlines is working with Congress to highlight how consumers could be impacted by proposals like tighter requirements around seat size.
“If all of a sudden someone says it has to be widened, there’s going to be less seats on low-cost carriers,” Parker said. “I don’t know if that’s good for consumers.”
While many U.S. industries are bracing for the impact of President Trump’s trade skirmishes with China and top allies like the European Union, Canada and Mexico, Parker says American Airlines has yet to be affected.
“We haven’t seen any change yet, any perceptible change yet, in demand for air travel,” he said at the event. “We’re hopeful that we’ll be able to work through all these issues in a way that continues to both facilitate and even promote global trade.”
Carmakers, retailers, technology firms, and others have all warned that the tariffs on aluminum and steel, as well as duties on imports from China, could raise costs for consumers, which might cut into budgets for leisure travel.
Airlines are already suffering from higher fuel costs. Parker said American will pay up to $2.5 billion more for jet fuel this year and has responded by eliminating some flights.
“Earnings are down versus last year, but that’s entirely due to the fact that fuel prices are up so much,” he said. “Some routes suddenly move from being marginal enough to keep to where you shouldn’t fly.”
