Four companies control the sky.
They extract $145 billion in hidden fees while executives go to prison for price-fixing. And deregulation was supposed to help consumers.
Domestic market controlled by 4 carriers
Criminal fines for cargo price-fixing
Annual hidden ancillary fees
The airline industry transformed from a regulated public utility into one of America's most concentrated markets. Price-fixing conspiracies sent executives to prison. Hidden fees escape federal taxation. And passengers have no alternatives.
22 airlines pleaded guilty. 8 executives went to prison.
The DOJ investigation into air cargo price-fixing uncovered one of the most extensive criminal conspiracies in aviation history. From 2000 to 2006, airlines systematically coordinated to fix fuel surcharges and cargo rates.
Air France-KLM
$350M fineSecond-highest criminal antitrust fine ever levied at that time
British Airways
$300M fineJapan Airlines
$300M fineFollowing Hurricanes Katrina and Rita, when American businesses desperately needed affordable shipping for recovery, airlines conspired to inflate fuel surcharges. Disasters are opportunities for price manipulation.
Fuel dropped 34%. Fares rose 13%.
From 2009 to 2015, carriers allegedly conspired to limit capacity growth to just 1.5% annually while the economy grew 2.2%. Jet fuel dropped to $1.94 per gallon. But ticket prices increased.
Combined airline profits in 2015 as fuel costs plummeted but ticket prices stayed high
Settlements from Southwest and American (who deny wrongdoing)
When Southwest announced expansion plans, other carriers publicly criticized them. Southwest quickly capitulated. The industry called it "capacity discipline."
Baggage fees grew 7x in three years.
From $464 million in 2007 to $3.4 billion by 2010. Base fares decreased by only $7 - meaning total travel cost actually increased despite claims of giving consumers "choice."
The Tax Dodge
The 7.5% federal excise tax applies only to base fares, not ancillary fees. Billions in revenue escape taxation that would fund airport infrastructure. Airlines use the savings to fund $91.6 million in annual lobbying to prevent reform.
DOT found that consumers face "substantial harm" because they "must spend additional time searching to find the total cost of travel." Airlines argued that requiring transparent fee disclosure would harm competition by making it "more difficult for consumers to view travel options."
88% control at Charlotte. No competition.
American operates 1,196 daily flights out of 1,365 total at Charlotte airport. This "fortress hub" model means millions of Americans have effectively one airline serving their city.
Fare Impact by Competition Level
After mergers, carriers abandoned secondary hubs like Cincinnati and Memphis, stranding communities. The promised efficiency gains went to shareholders, not passengers.
55,000 passengers bumped annually. It's legal.
Overbooking - selling seats that don't exist - remains legal. Airlines call it "revenue optimization." It's selling a product they know they cannot deliver, then forcing customers to accept whatever compensation the airline chooses.
When United had David Dao dragged bloodied from an aircraft in 2017, no meaningful reform followed. Airlines still involuntarily bump thousands annually. Frontier Airlines maintains rates multiple times higher than competitors.
A sky-high monument to corporate capture.
The industry that once symbolized American innovation now represents what happens when essential services are surrendered to unregulated monopolists who view criminal fines as operating expenses.