Delta, Continental, Others Jack Up Fares After Federal Tax Takes Vacation

As we reported last week, the inability for Congress to come to terms on a bill that would extend the FAA’s operating authority means that airlines are not currently charging federal taxes on airfares. But if you’re not seeing any difference in the final price of your ticket, that’s because most airlines have increased their fares since Saturday.

US Airways and American were the first major airlines to pump up their prices following Friday night’s FAA shutdown.

“We adjusted prices so the bottom-line price of a ticket remains the same as it was before… expiration of federal excise taxes,” an American rep tells the AP, which reports that US Airways issued a similar explanation.

It initially appeared that United/Continental and Delta would not join in the jacking-up, but by Saturday night, both airlines had reportedly ramped up their rates to take advantage of the temporary absence of the tax.

Additionally, Southwest announced over the weekend that rates on both its and new partner AirTran’s flights would be increased by $8 per round trip.

Some flyers may not see savings from expired taxes [SeattlePI.com]

Delta and others fail to pass FAA tax savings to customers [Examiner.com]