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Taxes And Fees On Airline Tickets

Fri Aug 08, 2003 4:01 am

I have a question:

I often book my flights on AA.com. Today, I was booking a NetSaaver from DFW to DCA. I have done this before, and know that when it says $169, the fare is going to go up a bit once I get to the booking screen due to taxes and fees.

However, recently I have noticed that the "$169" is not the base fare once you get to the booking screen. When I went to book, it showed a "base fare" of $157.21, then taxes of $26.79, making the trip an even $184. This is common on all airline web sites, I think. Why the discrepancy in the base fare numbers? Is AA showing how much it pays in taxes versus how much the customer is charged? How does this work?
"Lose" is not spelled with two o's!!!!
 
Tango-Bravo
Posts: 2887
Joined: Sun Jun 17, 2001 1:04 am

RE: Taxes And Fees On Airline Tickets

Fri Aug 08, 2003 5:01 am

One reason airlines do not include taxes in advertising fares is that taxes will vary depending on the number of segments and which airports will be included in the ititnerary actually booked.

The $169.00 advertised was actually the base fare $157.21 plus U.S. excise tax of $11.79 (7.5 percent of base fare). This is the only percentage tax on airfares; this is the only tax whose amount can be known before the itinerary is known.

All other taxes are contingent on routing: $3.00 segment tax per takeoff (even on same flight with intermediate stop/s), with no limit on the amount per ticket; $3.00 or $4.50 passenger facility charge each time a flight is boarded (including connecting flights) up to a maximum of $18.00 per ticket. Before June 1, 2003 a security tax of $2.50 per flight, up to a mximum of $10.00 per ticket was also added -- the tax is scheduled to resume after Oct. 1.

Even with the security tax suspended, taxes that vary by ititnerary can be any where from $12.00 to $30.00 (or more) on a roundtrip ticket. That is why, I suspect, airlines advertise fares excluding these taxes.

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