“The Government gets how much?”

Have you ever thought air fares were getting higher …….. and higher? Have you ever thought about what percentage of your air fare went to the Government (taxes and fees)? As I noted in an earlier post, the amount TSA charges to each ticket has increased from $2.50 to $5.60 per ticket, one way! Obviously ticket price will increase at some point, but will we blame the airlines or Government?

In 2012 the Department of Transportation reversed an advertising rule that has been in place for over 25 years. As a result of the change, airlines were “forced” to include Government imposed taxes and fees in the base price of tickets they advertise. This change tends to hide the taxes and fees from the customer, giving the impression that increases in ticket prices are caused by the airline and not the Government!

Accordingly to an article in the Houston Chronicle, currently a typical $300 airline ticket includes about $62 in Government taxes and fees, which is more than 20% of the ticket price!

There are efforts currently in Congress to address this issue with The Transparent Airlines Act which would help bring clarity to airline advertising.

Some when you buy that ticket just be aware that about 20% goes to th Government!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s