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Protecting Travelers from Unjust Federal Taxes and Fees

  • Published by Ozgur Tore

Airlines for America (A4A) urged the Transportation Security Administration (TSA) against enacting radical changes in the imposition of the TSA Passenger Fee, which would drive up the cost of air travel and force customers to pay millions more in federal taxes and fees than Congress intended.

Currently, the TSA Passenger Fee is assessed on a per-enplanement basis of $2.50 with a maximum one-way trip fee of $5 or $10 per round-trip itinerary. The Bipartisan Budget Act of 2013 simplified the fee structure creating a flat $5.60 fee per one-way trip, effective July 1, 2014, regardless of the number of enplanements. However, TSA has informed carriers it intends to break with previous regulatory guidance and no longer impose a round trip cap, which has always been the practice.

Calio noted that on a typical $300 roundtrip domestic ticket, customers pay $61 in federal taxes, or 20 percent of the ticket price. That number will increase to $63, or 21 percent, in July when the TSA passenger security tax more than doubles – from $2.50 per flight segment to $5.60 per one-way trip, costing passengers more than $1 billion annually.

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