Airline Fares Must Now Show All Taxes, Fees
Jan. 26-- U.S. airline fares will rise Thursday to reflect taxes and fees that the federal government says should be transparent and part of the advertised cost of air transportation.
As a result of consumer protection rules issued by the Department of Transportation in April, airlines, travel agencies and online travel sites are now required to include mandatory taxes and fees in published air fares.
In addition, the airlines must disclose baggage fees to consumers at the time they purchase tickets.
"Airline passengers have rights, and they should be able to expect fair and reasonable treatment when booking a trip and when they fly," Transportation Secretary Ray LaHood said. "The new passenger protections taking effect this week are a continuation of our effort to help air travelers receive the respect they deserve."
Federal officials said the new rules will make it easier for passengers to determine the full price they will have to pay for air transportation before they travel.
Before the new rules went into effect, airlines and online travel sites were allowed to advertise fares that didn't include government-imposed taxes and fees.
The taxes and fees include the $4.50-per-ticket passenger facility charge at many originating airports, federal taxes and fuel surcharges implemented by the airlines to cover escalating fuel costs.
Greg Spears, CEO of Travel Leaders/Spears Travel in Tulsa, said passengers will notice a single-digit increase in fares on most trips booked under the new federal regulations.
"It will vary depending on what time you go and what fare you're flying on," Spears said. "When you book, it will add from $3 to $25 each way for passenger facility charges, airport fees and government fees, in addition to fuel surcharges."
Airlines for America, the industry trade group formerly known as the Air Transport Association, said it supports the new rules, although it has criticized the proliferation in recent years of government taxes and fees.
The airline trade group, for instance, said the tax burden on a typical $300 round-trip ticket has nearly tripled since 1972, rising from $22 (7 percent) to $61 (20 percent).
"All Airlines for America members provide details on ticket prices and other changes prior to purchase today," the trade group said. "We believe consumers should always know what they are paying for, including how much of their ticket prices go to taxes. We share the DOT goal of continuously improving the customer experience and our member airlines will implement the new rules as efficiently as possible."
Other DOT consumer rules taking effect this week include the requirement that passengers will be able to hold a reservation without payment, or cancel a booking without penalty, for 24 hours after the reservation is made, if they make the reservation one week or more prior to a flight's departure date.
In addition, airlines will be required to promptly notify passengers of flight delays of more than 30 minutes, as well as flight cancellations and diversions. Airlines also will be generally prohibited from increasing the price of a ticket after it is purchased.
The new rules were issued by DOT in April, but implementation was delayed to permit the travel industry to program the changes into their computers.
Dana Daza, owner/manager of Warren Place Travel in Tulsa, said there has been no response to the new rules among her clients.
"We haven't had any clients who are even aware of it," Daza said. "Those fees have gone on for a long time; they're just disclosing them now. I think disclosure is always a good thing."
D.R. Stewart 918-581-8451
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