Air Travel – Know the Taxes

Monday, June 3, 2013

Airline tickets are very expensive.  When you also look at airline tax (the taxes after the airline ticket price), then you are sometimes looking at the same cost as the flight (depending on your destination and price of ticket).  With fuel prices skyrocketing and oil prices at an all-time high, it’s no wonder that airlines have to charge more for surcharges with their tickets.  However, it seems almost a hidden cost (buried deep into the ticket price).  Airline ticket prices have gone up nearly 33% in the past ten years, and airline tax is no different. 

The taxes are more or less similar to that of the sales taxes and are charged on the amount paid for the commercial air transportation. The airlines simply collect the mandatory taxes that are collected through per ticket booked by the passenger and are remitted to the regulatory body.

So what taxes can you expect to pay when you are paying for airline tax?

In general, you can expect to pay:

  • Basic tax of 7.5% on the basic ticket fare

  • Fuel surcharges

  • International travel facilities tax

  • 6.25% is charged for transporting property by air

In addition to above charges there may be some hidden fees and surcharges such as;

  • Passenger facility charges

  • Airport utility charges

  • Airport development fees

  • Excess baggage charge

So, you are thinking, what if I want to avoid all these ticket and tax charges and fly on points instead?  With all the frequent flyer programs out there, and credit cards with reward options, then you would think that it would be much cheaper to fly this way.  And it is!  Generally, the cost of the airline ticket is paid for, but unfortunately even on points tickets, customers must pay for the taxes and surcharges associated with the airline ticket price.

Unfortunately, if you like to travel by air, there is not much you can do about the airline taxes and surcharges.  We can just hope that they do not continue to rise.  However, you should inquire the next time about the airline taxes and just what your money is covering you for.