Cheap airplane tickets and cheap vacation packages got cheaper on Alaska, Hawaiian and Spirit airlines because of the decrease in federal taxes that has resulted from Fridays (7/22) partial shutdown of the Federal Aviation Administration (FAA).
Taxes affected by the shutdown include a 7.5 percent ticket tax, a separate excise tax of $3.70 per segment (i.e., per takeoff); a $16.30 tax on international arrivals and departures; a 6.25 percent tax on freight shipments, and other levies.
Fliers who had previously purchased tickets that included these taxes for flights taking off on Sunday (7/24) or afterwards should be able to get a tax refund, according to Treasury officials. Airlines collect taxes at the time of purchase but the federal government does not receive the money until the plane takes off. The Treasury Department is working with the airlines to come up with a way for fliers to get refunds for the days that there are no taxes owed.
Airlines are continuing to collect a passenger security fee of $2.50 per segment and a passenger facility charge of up to $18 per round trip.
Most major U.S. airlines have raised their prices to offset the decrease in federal taxes, pocketing the difference. AirTran, American, Continental, Delta, JetBlue, Southwest, and United all have increased their prices. Passengers on these airlines are paying the same amount for a ticket as they did before the federal excise tax expired.
Most airlines have not indicated whether their prices increases will be rolled back once Congress resolves its impasse and the FAA is authorized again to collect taxes. www.cheapfares.com