
You might think that since the taxes that the FAA collects on airline tickets went dormant due to the FAA shutdown, travelers might be able to save a few dollars on their tickets. Unfortunately, you’d be wrong. As might be expected, most airlines quietly raised ticket prices to cover the missing taxes. And the result? Consumers pay the same prices for tickets, and airlines are making millions more per day.
How much, exactly? According to the New York Times, The taxes include a 7.5% levy on domestic tickets, $3.70 for each segment of the fight, and a $16.30 tax on international arrivals and departures. In the end, airlines are pocketing an extra $25 – $50 per ticket. Delta is making about $4-$5 million per day from the increased ticket prices, according to USA Today.
By and large the airlines are defending their actions, mostly. Jean Medina, a spokeswoman for the Air Transport Association, the airline industry trade group, said, “Basically, consumers are now paying the same as they did last week.” Glen Hauenstein, Delta’s Executive Vice President for Network Planning, Revenue Management and Marketing says “What the industry has done is simply to maintain prices at market-clearing levels.” What about American Airlines, once of the first airlines to raise their rates? “We adjusted prices so the bottom-line price of a ticket remains the same as it was before… expiration of federal excise taxes,” according to an American Airlines representative.
At least we can rest easy knowing that once the FAA budget gets approved, the rates will drop to make up for the taxes, right? Not so fast. According to the New York Times, “None of the airline industry experts I spoke to expected the airlines to roll back the new fare increases once the taxes are reauthorized.”
What can a traveler do? First, not all airlines raised their fees. Alaska Airlines, Spirit Airlines and a few others haven’t raised their fees. JetBlue did raise their fees at but is offering customers a refund (with a few catches), and now has eliminated the extra fees. We suggest flying through these and other airlines that haven’t raised their rates, and let the airlines that have raised their rates know how you feel! And keep an eye out for when the FAA is back in business – and watch those rates!