Airlines Not Passing On Savings Of Not Having To Pay FAA Taxes

Airlines Not Passing On Savings Of Not Having To Pay FAA Taxes

When Congress failed Friday to extend a bill that would have kept the Federal Aviation Administration (FAA) running, they handed airlines a $25 million a day gift. Without the extension, the FAA doesn’t have the authority to collect taxes. But rather than pass on the savings, nearly all airlines actually raised fares to about the same amount as the federal taxes. Most consumers won’t notice because prices are the same, even though it’s effectively a price hike. [More]