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How Do Taxes On Airline Tickets Work?  
User currently offlineAirxliban From Lebanon, joined Oct 2003, 4513 posts, RR: 53
Posted (5 years 2 weeks 8 hours ago) and read 8036 times:

Hello all,

I was hoping someone could explain to me how taxes are calculated for an airline ticket. I know that there are various components, such as airport taxes, government taxes, and the class of travel you are booked in, but I would like some more detail if possible.

For example - a booking originating in Dubai (DXB) with return air fare to Paris Charles de Gaulle would incur taxes of 325 AED (US$ 89) on Emirates, and 1,005 AED (US$ 273) on Air France - for the same days, the same class of travel (economy), and the same booking medium (the airlines' respective websites).

Based on my very limited knowledge of how this works, ought one to expect that the taxes would be the same? If not, what may cause the amount in tax to differ?

Thanks in advance, and sorry if this has been discussed before - I did find a couple of threads from ages ago (2003 and 2005) but none of them specifically answered this question.

Airxliban


PARIS, FRANCE...THE BEIRUT OF EUROPE.
8 replies: All unread, jump to last
 
User currently offlineJRadier From Netherlands, joined Sep 2004, 4703 posts, RR: 50
Reply 1, posted (5 years 2 weeks 7 hours ago) and read 8005 times:

Are you sure it were only taxes, and not 'taxes and fees'?


For once you have tasted flight you will walk the earth with your eyes turned skywards, for there you have been and ther
User currently offlineSomeone83 From Norway, joined Sep 2006, 3424 posts, RR: 3
Reply 2, posted (5 years 2 weeks 7 hours ago) and read 7998 times:



Quoting Airxliban (Thread starter):
For example - a booking originating in Dubai (DXB) with return air fare to Paris Charles de Gaulle would incur taxes of 325 AED (US$ 89) on Emirates, and 1,005 AED (US$ 273) on Air France - for the same days, the same class of travel (economy), and the same booking medium (the airlines' respective websites).

The "taxes" on the AF ticket is included fuel surcharge.


User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 3, posted (5 years 2 weeks 7 hours ago) and read 7987 times:



Quoting Airxliban (Thread starter):
ought one to expect that the taxes would be the same?

Taxes are, and will, be exactly the same if your are departing from the same airport (taxes can vary between airports within the same city) so your figures must therefore be including some element(s) of fees, and which are exclusive to any given airline.


User currently offlineRivet42 From United Kingdom, joined Aug 2005, 818 posts, RR: 1
Reply 4, posted (5 years 2 weeks 6 hours ago) and read 7958 times:

You don't say how you are booking, but if I look at both airline's website, on EK the fare includes AED325 "Taxes and fees", and on AF they quote "Taxes" of AED1005, which is pretty vague as it does indeed include a fuel surcharge (the amount of which is not specified anywhere on the AF website). For the dates I chose both total fares came out the same, which is pretty much what I'd expect.

The important point is that should a refund be required, AF state that the fuel surcharge is not refundable, which in effect means it is part of the basic fare. The problem is you don't see the full taxes, fees & surcharges breakdown until after purchase, when the ticket includes the full fare calculation (with a whole variety of 2-letter codes to cover all the extras).

This is bit of airline skulduggery that I think is long overdue for stronger legislation: the only part of the fare that should be allowed to be counted separately should be the bits that are nothing to do with the airline and are indeed equal for any flight between the same airports, i.e. airport and government taxes. Everything else should be considered as part of the basic fare.

Riv'



I travel, therefore I am.
User currently offlinePellegrine From France, joined Mar 2007, 2468 posts, RR: 8
Reply 5, posted (5 years 2 weeks 5 hours ago) and read 7914 times:



Quoting Airxliban (Thread starter):
For example - a booking originating in Dubai (DXB) with return air fare to Paris Charles de Gaulle would incur taxes of 325 AED (US$ 89) on Emirates, and 1,005 AED (US$ 273) on Air France - for the same days, the same class of travel (economy), and the same booking medium (the airlines' respective websites).

In your specific example, for AF there is a line:

Tax: AF YQ surcharge $180.00
(it is obviously not a tax since EK does not have it, it is an extra fuel charge)

for EK and AF, both tickets will have these lines:

Tax: United Arab Emirates Passenger Service Charge AED 75
Tax: French Aviation Civile Tax €7.04
Tax: French International Passenger Service Charge €21.47
Tax: French Airport Tax €10.38
Tax: French Air Passenger Solidarity Tax €4.00

You can check all of these fees on http://matrix.itasoftware.com/, click 'Login as a guest' and then 'Show booking details' when you have selected an itinerary.

Quoting Airxliban (Thread starter):

Based on my very limited knowledge of how this works, ought one to expect that the taxes would be the same? If not, what may cause the amount in tax to differ?

Nevermind about what an airline will tell you, the taxes and official fees are always the same. They may hide their own extra fees under the term "taxes" though.

Hope this helps.



oh boy!!!
User currently offlineViscount724 From Switzerland, joined Oct 2006, 25652 posts, RR: 22
Reply 6, posted (5 years 1 week 6 days 20 hours ago) and read 7786 times:



Quoting Rivet42 (Reply 4):
The problem is you don't see the full taxes, fees & surcharges breakdown until after purchase,

All the passenger cares about is the total of all the amounts (fares/taxes/fees/surcharges) and virtually all airlines now quote the total fare from the initial fare display. Why do you care how the total is calculated?

In many parts of the world (Europe for one), it's is now mandatory per EU regulations to quote the total price in advertising and Internet fare displays. The only exception is sometimes small booking fees when payment is by credit card (for example, about $4 on AF/KL).

I know the same requirement does not apply in certain markets like the U.S. and Canada. I'm surprised governments there don't impose the same regulations to protect consumers from being misled re the total cost of their transportation.


User currently offlineExFATboy From United States of America, joined Jul 2003, 2974 posts, RR: 9
Reply 7, posted (5 years 1 week 6 days 2 hours ago) and read 7659 times:



Quoting Viscount724 (Reply 6):
I know the same requirement does not apply in certain markets like the U.S. and Canada. I'm surprised governments there don't impose the same regulations to protect consumers from being misled re the total cost of their transportation.

In the US, online quotes include all fees and taxes - on some systems (e.g. Expedia, Travelocity, Orbitz) the "base fare" is displayed along with a "total" that includes everything, while on others (e.g Kayak), a single "all-in" fare is displayed.

The rules for advertising are more flexible - most airline advertising in the US takes the form of the "from $xxx" ad, and these ads are permitted to leave out some taxes and fees, on the grounds that either the tax is the same regardless of who you fly (for example, the "9/11 Security Fee"...gods, I hate that name) or cannot be calculated until the actual routing is chosen. However, if a "surcharge"or the like is imposed throughout the time period covered by the ad, I believe it must be included in the "from..." price. If a "surcharge" is selectively imposed on certain dates (like the $10 across-the-board charge US carriers are putting on certain dates right now), it can be disclosed in the "fine print", although if this practice continues to spread, the FTC may take another look at this one.

Because Americans are used to advertised prices not including taxes, this isn't that big a deal...we know we have to go to the Internet or ring a travel agent or the airline to get the "all-in" price. Can be a bit of a shock if you see a "tax-free" ad for a flight to Europe and then find out just how much the taxes are!


User currently offlinePanova98 From United States of America, joined Apr 2008, 304 posts, RR: 0
Reply 8, posted (5 years 1 week 6 days ago) and read 7608 times:

The debate on "how do taxes on airline tickets work?" has been ongoing for about as long as airline tickets have been written, at least in the US. Even today, the US DOT is issuing fines against airlines for failing to handle the "disclosure" of taxes correctly, and if you ask an airline to help you understand it, you will probably become more confused or have information that is just wrong.

It' used to be, you had a hard-copy ticket that spelled out everything, in code, that few if any of us could understand. Now, using UA as an example, you have an "e-ticket" that tells you nothing that you could actually audit and an "e-receipt" that shows summary data, specifically, "Base Fare, Taxes & Fees, and Total" that technically, I believe, are incorrect.

On a typical US domestic ticket itinerary, as I understand it, there is (1) a FARE, which could be made up of one or more local fares: (2) a 7.5% US exicse TAX (whether based on each separate fare, or simply the total, I'm not sure): (3) one or more fiight segment FEES, or are they TAXES: (4) one or more September 11th Sercurity FEES; and (5) one or more airport Passenger Facility CHARGES. The fare is dictated by the airline; the taxes, fees, and charges, by some government agency or department.

UA, for example, includes the 7.5% excise tax as part of the fare in their summarizations, and the rest, as taxes and fees. When I asked a UA rep about this breakout, they said no, the 7.5% tax was in the "taxes & fees" summary, go figure!

So, where are we? I just wish they would tell me how much is being charged for EACH government-imposed tax/fee/charge, and I'll summarize it the way I want it.


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