Airlines Appear to be Only Winners in Budget Debate

<a href="http://www.flickr.com/photos/shyb/63692776/sizes/m/in/photostream/">shyb</a>/Flickr

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


The noise generated by the debt ceiling debate has largely drowned out the news that the Federal Aviation Administration was crippled last week after Congress failed to reauthorize its funding. This has put 4,000 aviation workers on furlough, halted construction projects, and even stopped the FAA from collecting airline taxes.

But the shutdown isn’t hurting the airline industry. Instead of passing the savings from the missing taxes on to consumers, the airlines have decided to increase ticket prices and keep the money that would have gone to taxes for themselves—a windfall of up to $30 million a day. Here’s the Wall Street Journal:

The suspended levies include a 7.5% sales tax on domestic tickets, a $3.70-per-takeoff segment fee, a $16.30 (each way) international arrival and departure tax, and an $8.20 tax for flights linking the U.S. mainland to Alaska and Hawaii. Airlines must continue to collect security fees.

Airlines including US Airways Group Inc., AMR Corp.’s American Airlines, Southwest Airlines Co. and JetBlue Airways Corp. began Friday marking up their fares, although the fares didn’t appear to be higher because the totals didn’t change, says Rick Seaney, chief executive of tracker FareCompare.com.

Over the weekend, more carriers joined in, including Delta Air Lines Inc. and United Continental Holdings Inc., Mr. Seaney says. By and large, they raised fares 7.5% and added charges of $6 to $12 a ticket to account for the other fees.

So in addition to charging you to print a boarding pass, charging you for both checked and carry-on items, charging you for the convenience of using a credit card, and charging you for just booking a ticket to begin with, airlines have now figured out how to profit off the budget stalemate.

THE END...

of our fiscal year is Thursday, June 30, and we have a much larger fundraising gap than we can easily manage with only days left to go.

Right now is no time to come up short: If you value the hard-hitting, democracy-protecting, justice-advancing journalism you get from Mother Jones, please help us keep charging as hard as we possibly can with a much-needed and much-appreciated donation today.

payment methods

THE END...

of our fiscal year is Thursday, June 30, and we have a much larger fundraising gap than we can easily manage with only days left to go.

Right now is no time to come up short: If you value the hard-hitting, democracy-protecting, justice-advancing journalism you get from Mother Jones, please help us keep charging as hard as we possibly can with a much-needed and much-appreciated donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate