The Pelican Institute Opposes Higher Taxes on Airline Travelers

The Pelican Institute Opposes Higher Taxes on Airline Travelers

This week, the Pelican Institute joined groups around the country in signing a letter opposing legislative efforts to increase the Passenger Facility Charge (PFC) for airline tickets.

When purchasing an airline ticket, you may notice that there are taxes and fees associated with this purchase. In total, these taxes and fees can account for 20 percent of the total purchase price of an airline ticket, drastically increasing the price of some flights.

The PFC portion of those taxes goes directly to the maintenance and upkeep of airports. Thankfully, this tax is capped at $4.50 per leg of a trip and no more than $18 for a round trip. In 2018, consumers spent $3.5 billion on PFC fees alone, more than twice as much as they spent in 2000, despite the rates staying capped.

Raising these rates would not only hurt consumers, who would see another increase in the cost of their airline tickets, but would be especially damaging to the state of Louisiana.  Tourism is a major economic driver in the Pelican state so as travel costs increase and become out of reach for some, people will look to cheaper options, like staying closer to home rather than visiting our state.

That is why the Pelican Institute is proud to join with groups around the country to oppose this tax increase.  Increasing this tax would negatively impact consumers and the workers in the tourism industry. Louisiana cannot afford further burden on its economy.  We need to focus on policies that increase jobs and opportunity in Louisiana. Click here to read the entire letter.

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