Travel News

With Proposed Budget, Airfares Could Increase Again

pax facility charge

Tucked into the president’s budget for the 2016 fiscal year is another suggested hike in fees on airline tickets. But this new increase would go straight to airports – adding $2.3 billion for airport facilities a year, the U.S. Government Accountability Office (GAO) estimates, but at a cost.

The president’s budget proposes trimming airport funding grants by half a billion dollars. To offset the pain, the budget would allow all commercial airports to increase the non-federal Passenger Facility Charge (PFC).

So how much would this cost? Right now, the Passenger Facility Charge is $4.50 per passenger, per flight. If the budget goes into effect, it will increase to $8 per passenger per flight–which adds up significantly for traveling families.

Not surprisingly, the Airports Council International-North America supports the higher fee, saying U.S. airports need $15.4 billion annually for improvements. The US Travel Association also supports the fee increase.

Airlines, however, do not support the increase. Their argument, which has a certain irony, is that  the adding of more fees could create a tipping point for passengers, discouraging them from flying in the future.

But if anyone knows about adding fees, it’s the airlines themselves! In fact, the airline environment in America should also be called the land of the fee and the home of the brave. Anyone who flies knows about checked bag fees, ticket change fees, cancellation fees. And that’s just the beginning.

Allegiant and Spirit also charge carry-on bag fees, which can cost anywhere between $35 and $75–or even up to $100.

Watch Peter Greenberg’s report for CBS to learn more about the proposed budget and how it could affect the future cost of your plane tickets.

Want to find out more about additional fees tacked onto airfare? Check out:

By Peter Greenberg for PeterGreenberg.com