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airplanes travel planes sad suitcasesFrom the moment you book your plane ticket (want to select your seat in advance? That’ll be $10, please) to the day you roll up to the check-in counter and shell out $50 for your checked bags, the airlines leave no fee unturned. And this past weekend, most major U.S. airlines found yet another way to line their pockets at the expense of the flying public.

On Friday, Congress failed to pass legislation to reauthorize the Federal Aviation Administration. As of Saturday, FAA-funded construction projects have been put on hold, all non-essential employees have been furloughed and — most importantly for fliers — the agency has lost the ability to collect various taxes that normally go along with the purchase of a plane ticket.

Hurray! Cheaper airfare for everyone, right?

Well, no. Instead of passing the tax savings on to travelers, most major airlines are raising their fares to offset the cost of the taxes — and pocketing the difference. The Associated Press reports that American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue have all increased their fares, typically by about 7.5 percent.

According to an earlier AP report, “Passengers who bought tickets before this weekend but travel during the FAA shutdown could be entitled to a refund of the taxes that they paid, said Treasury Department spokeswoman Sandra Salstrom. She said it’s unclear whether the government can keep taxes for travel at a time when it doesn’t have authority to collect the money.”

Editor’s Note: On August 5, the IRS announced that passengers will not be getting refunds for taxes paid during the FAA shutdown after all. You can read the IRS statement here.

There are a few airlines out there that are giving travelers a break, including Virgin America, Frontier, Alaska and Spirit. Yes, that’s the same Spirit we wrote about a couple of weeks ago as one of the ugliest airlines in the industry. But hey, we can give credit where it’s due. It’s nice to see Spirit making the customer-friendly choice for once.

As for the big guys, shame on them. Really, it’s no wonder we hate the airlines.



– written by Sarah Schlichter

2 Responses to “Airfare Taxes Expire, But Passengers Still Pay”

  1. Confused says:

    So I am flying saturday Who do I get my tax refund back from the Government or the irlines or the booking site

    • Hi there,

      According to a statement on the IRS site, the government will be providing guidance on how to claim a tax refund in the coming days or weeks. I’d check with your booking site to see if they have any more information, as they were the ones to collect the taxes on behalf of the government, but my guess is that you’ll most likely have to get your refund directly from the government.

      Sarah Schlichter
      Editor
      IndependentTraveler.com

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