Alexandria, Va., 2019-May-09 — /Travel PR News/ — With airlines collecting nearly $5 billion in baggage fees in 2018 along with billions more in other ancillary charges – record highs – the American Association of Airport Executives (AAAE) called on Congress to update the U.S. tax code and the federal cap on local airport user fees to reflect the airlines’ increased focus on bag fees and ancillary revenue and spur needed investments in the nation’s airports.
“While airlines pile up record fee collections from passengers for so-called ‘optional’ services like taking a bag for a trip, they vigorously fight modest proposals that would upgrade airports and other aviation infrastructure,” AAAE President and CEO Todd Hauptli noted in response to the 2018 data released today by the U.S. Department of Transportation and the airlines’ continued opposition to bipartisan calls to adjust a local airport user fee known as the Passenger Facility Charge (PFC) that finances the construction of new runways, terminals, gates and other airport improvements that directly benefit passengers and increase airline competition.
“We can’t meet today’s needs, let alone tomorrow’s, while maintaining a system that fails to take into account changed airline business practices and an airport financing model last updated decades ago,” Hauptli added. “It’s past time for Congress to look past self-serving airline rhetoric and make meaningful changes to boost airport infrastructure investments that directly benefit the traveling public.”
According to data released today by DOT’s Bureau of Transportation Statistics, airlines collected more than $1.2 billion in baggage fees during the fourth quarter of 2018, bringing total bag fee collections for the year to $4.9 billion. Airlines collected another $2.7 billion in reservation change and cancellation fees during 2018, for a total of $7.6 billion in ancillary fees their passengers paid last year.
Although airlines have increased their bag fees and collect record amounts from their customers, they continue to oppose adjusting the federal cap on local PFCs, a user fee that must be justified locally, imposed locally and used locally on FAA-approved projects that enhance local airport facilities. The federal cap on the local PFC has not been adjusted since 2000. Despite misleading airline arguments, the PFC is not a tax and never goes to the federal Treasury, a fact verified by the non-partisan Congressional Research Service.
Bag and Ticket Fee Facts
PFC Facts
ABOUT AAAE:
Founded in 1928, AAAE is the world’s largest professional organization representing the men and women who work at public-use commercial and general aviation airports. AAAE’s 6,500 members represent some 875 airports and hundreds of companies and organizations that support the airport industry. Headquartered in Alexandria, Va., AAAE serves its membership through results-oriented representation in Washington, D.C., and delivers a wide range of industry services and professional development opportunities, including training, conferences, and a highly respected accreditation program.
AAAE established the Airport Innovation Accelerator as a hub for innovation where airports work directly with corporate leaders, start-ups, regulators, airlines, and key aviation stakeholders to create the airports of the future. Through events, workshops, and information sharing, the Accelerator is set to bring new and better to airports more quickly and efficiently. You can learn more about the Accelerator at www.airportinnovation.org/
CONTACT:
Adam Snider
Director of Public Affairs
703.797.2576
Source: AAAE
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