(Reuters) - A Senate report called for greater transparency in air fares after finding that some airline fees, such as change and cancellation penalties and preferred seating, are hiding the true cost of air travel.
The report by the minority staff of the Senate Commerce Committee on Thursday found, among other issues, that travelers buying preferred seats on an airline's website are sometimes only shown seats that require additional fees.
"The traveling public is being nickel-and-dimed to death," said Senator Bill Nelson, who is a part of the committee.
"What's worse is that many flyers don't learn about the actual cost of their travel until it's too late."
Airlines globally pocketed a record $38.1 billion in extra fees last year, an increase of more than 1400 percent since 2007, the report said, citing a recent study.
The committee made a number of recommendations to protect passengers such as mandating that airlines clearly mention that charges for a preferred seat are optional, make better and earlier disclosures of ancillary fees, and link baggage fees to their costs.
"It would be difficult to find an industry that is more transparent than airlines in their pricing," Airlines for America, the trade group representing major U.S. airlines, said in a statement.
The report comes at a difficult time for U.S. airlines.
The U.S. Justice Department said in early July it is investigating whether carriers worked together illegally to keep fares high by signaling plans to limit flights.
Delta Air Lines Inc (NYSE:DAL), American Airlines Group Inc, United Continental Holdings Inc, Southwest Airlines Co and JetBlue Airways Corp are the subject of a U.S. Transportation Department probe into possible price gouging while train service was disabled after an Amtrak crash in May.