AAAE Calls on Airlines to End Opposition to Adjusting Local User Fee to Improve Facilities
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Alexandria, VA - With airlines collecting nearly $1.3 billion in baggage fees in the third quarter of 2018 – another new record and the 10th consecutive quarter in excess of $1 billion – the American Association of Airport Executives (AAAE) again called on U.S. carriers to drop their short-sighted opposition to adjusting the federal cap on 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. “Ho-Ho-Ho has become Dough-Dough-Dough this holiday season for the airlines with billions in bag fees,” AAAE President and CEO Todd Hauptli said. “Hope they enjoy their last free sleigh-ride before the new Congress reins them in.” According to data released today by the U.S. Department of Transportation's Bureau of Transportation Statistics, airlines have collected more than $3.6 billion in baggage fees through the first nine months of the year. That comes on top of a record $4.5 billion in bag fees last year. Airlines have collected another $2 billion in reservation change and cancellation fees through September, for a total of more than $5.6 billion in ancillary fees their passengers have paid so far this year. At the same time the carriers are increasing their bag fees and collecting record amounts in ancillary charges from their customers, airlines 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
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