WASHINGTON, Dec 4 (Reuters) - Senators on Wednesday

harshly criticized rising airline fees for luggage and seat

assignments, saying carriers are looking for new ways to extract

more money from passengers.

Senator Richard Blumenthal, who chairs the Permanent

Subcommittee on Investigations, blasted carriers at a hearing

with American Airlines ( AAL ), United Airlines Delta

Air Lines, Spirit Airlines ( SAVEQ ) and Frontier

executives.

"Airlines these days view their customers as little more

than walking piggy banks to be shaken down for every possible

dime," Blumenthal said.

Republican Senator Josh Hawley questioned why some airlines

charge passengers different fees for baggage on the same flight.

"This is Russian roulette," Hawley said. "Nobody enjoys

flying on your airlines. It's a disaster. ... It's terrible.

It's absolutely terrible"

A report released by Blumenthal last week disclosed the five

airlines collectively earned $12.4 billion in revenue from seat

fees between 2018 and 2023.

Blumenthal's panel spent a year investigating, finding

carriers are increasingly using algorithms to set fees.

Carriers are working on customer-specific pricing "to

discriminate against passengers, and to raise fares and fees for

consumers the airline believes will pay more," Blumenthal said.

Airlines say the fees are transparent and they need to offer

consumers choices while they face rising costs.

American Airlines ( AAL ) Vice Chair Stephen Johnson said carriers

need to "appeal to the most budget-conscious customers." Delta

executive Peter Carter said the carrier provides "options and

value for every customer. ... Fee practices that erode the trust

and loyalty of our customers are not in our best interests."

United executive Andrew Nocella said ending family seating

in 2023 and Wifi fees next year will reduce revenues by hundreds

of millions of dollars.

Blumenthal's committee found budget carriers Frontier and

Spirit paid $26 million to gate agents and others between 2022

and 2023 to catch passengers not paying for bag fees or having

oversized items.

Frontier personnel can earn $10 for each bag passengers must

check at the gate, the report said. Frontier CEO Barry Biffle

defended the practice, telling Reuters passengers who were

trying to evade paying were shoplifting. Spirit executive

Matthew Klein said the airline stopped paying employees for

catching passengers on Sept. 30.

Earlier this year, airlines sued to block the U.S.

Transportation Department's new rule on upfront fee disclosure,

while carriers in 2018 successfully lobbied against bipartisan

legislation to mandate "reasonable and proportional" baggage and

change fees.