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  • I’ll Take The Ticket Without Extra Taxes, Please…

I’ll Take The Ticket Without Extra Taxes, Please…

Kelly Phillips ErbSeptember 5, 2007

Oh, if it were only that easy. Airlines fee and tax you to death these days.

Have a look:

For domestic flights, there is an “excise” tax of 7.5% of the fare. You’ll see this amount on your bill because the Department of Transportation (DOT) requires airlines to include that tax in advertised fares. What they don’t have to advertise are other government fees and taxes such as the $3.30 per flight segment (maximum of four segments charged on any round-trip ticket) plus a $2.50 security fee per departure, sometimes referred to as the September 11 fee – no doubt to make you feel less annoyed about having to pay it. Additionally, individual airports may impose airport passenger facility charges of up to $4.50 per departure (also a maximum of four fees per round-trip ticket). So, doing some quick math – a $500 ticket could cost you almost $575.

Heading to Alaska or Hawaii? Sure, we claim that they’re US states. But hopping a plane to or from either destination will result in an extra travel facilities tax of up to $13.40 per round-trip. Quite frankly, I’m not sure what that’s about – except perhaps as a revenue raiser.

And Canada? There’s now a federal immigration fee of $7.00 per round-trip, additional airport fees of $6.50 per round-trip and our friendly neighbors to the north tack on a Canada Air Traveler Security charge of $8.00 per round-trip.

It gets worse for international travel. The government charges a departure fee of $14.50 and an arrival fee of $14.50 on international flight tickets. Additionally, you’re charged $7 for immigration, $5 for customs services and $5 to fund “animal and plant inspections” (one of my favorites). Most airlines note that fees may go “up to $200” for international travel.

Oh – and did I mention the airline fuel surcharges?

Sheesh.

And it’s about to get worse. That airport facility tax? The one that’s $4.50 right now? The Chicago Department of Aviation and other airport authorities have asked Congress for permission to boost the tax to $7.50 (a 67% increase) to help pay for airport capital-improvement projects. That’s because O’Hare, the world’s second-busiest airport (and my personal nightmare), is in the midst of an expansion – already behind schedule and over budget, much like the airlines that use it – that the airlines don’t want to pay for. Yep, the airlines who use the airport don’t want to pay to make it better. They think we should pay. And we probably will: consumers have little say when it comes to airline fees and taxes. So, keep your eyes out in the upcoming months. You’re about to the fly the fee and tax-friendly skies…

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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4 thoughts on “I’ll Take The Ticket Without Extra Taxes, Please…”

  1. Jake says:
    September 5, 2007 at 8:35 pm

    until we develop the rail system so that people can take trains (like other civilized folk…), don’t even bother to complain about the airlines. they’ve an effective monopoly. yeah for them.

    Reply
  2. Kelly says:
    September 5, 2007 at 9:45 pm

    Jake –
    I completely agree.
    When I was in Germany for a month a couple of years ago, we took the train everywhere. Quick, efficient, affordable.
    I love the train but in the US, we have basically stripped rail down to the bones so that it’s neither economic nor practical.
    If you’re interested, here’s the 2008 proposed budget (with 2006 and 2007 numbers) for DOT:

    http://www.whitehouse.gov/omb/budget/fy2008/transportation.html

    Reply
  3. Doug says:
    September 5, 2007 at 10:17 pm

    Talk about getting nickeled and dimed to death. The airline I fly a lot (Spirit) also charges for luggage you check, sodas, etc. They try to get money however they can.

    Reply
  4. Kelly says:
    September 5, 2007 at 11:49 pm

    Now THAT is one of my pet peeves.

    Don’t charge me $300 for a ticket, then $5 for headsets, $3 for drinks, etc. Charge me $325 and be done with it. I don’t travel with small bills. Small children, yes.

    Reply

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