Dear Airlines: Stop Pocketing Tax Holiday Savings
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
I know this may fall on deaf ears, but I’d like to urge the airlines to pass along the savings from not collecting FAA taxes onto consumers. I’m writing this post on a Delta flight that I was able to rebook for a $40 savings the day the taxes stopped being collected. That certainly helps considering the sky-high coach one way JFK-LAX fare was $440 – after the little bit of tax help!
Since then, Delta and most other major airlines – with the exception of Alaska and Spirit – have raised fares the amount of the foregone taxes and are now pocketing the money themselves.
Luckily, I’m not the only one who feels that this is a little messed up, though most senators want that money to be saved and put towards the FAA, like it’s supposed to be.
West Virginia Democrat John D. Rockefeller IV, chairman of the Senate Commerce, Science and Transportation Committee, said he was “deeply perplexed” that most airlines had decided to keep the money.
“We urge the nation’s airlines to put all of the profits that they are making from the lapse of the aviation taxes into an escrow account so that they can be transferred back into the Airport and Airway Trust Fund when Congress reinstates the taxes,” Rockefeller and fellow Democrat Maria Cantwell of Washington said Tuesday in a letter to Richard Anderson, the chief executive of Delta Air Lines Inc. and chairman of the Air Transport Association.
What are your thoughts? Should the airlines get a little revenue love because of this weird government issue? Or should it go to passengers or to the FAA?
I vote for passengers!
Welcome to The Points Guy!
Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in your first three months of card membership. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first 3 months of membership.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new Card in your first 3 months.
- Plus, earn up to $100 back in statement credits for eligible purchases at US restaurants with your card within the first 3 months of membership.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees