Taxes and Fees

Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP
Commercial aviation drives more than $1 trillion per year in economic activity
U.S. airlines move 50,000 tons of cargo per day
In 2011, the average value of a kilogram of U.S. merchandise exported by air was 117 times the value exported by sea
For every 100 airline jobs, some 360 are supported outside of the airline industry
Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket
From 2000-2010, U.S. airlines carried 15% more traffic while using 2.1 billion fewer gallons of fuel
Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions
From 2000-2010, airlines reduced GHG emissions by 10% while transporting 15% more passengers and cargo
From 1975-2010, the number of U.S. residents exposed to significant noise levels fell 95%
Commercial air travel is the safest form of intercity transportation in the United States
In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s
From 2000-2010, U.S. airlines improved the on-time arrival rate from 72.6% to 79.8%
From 2000-2010, U.S. airlines halved the flight cancellation rate from 3.30% to 1.76%
Airfares are a bargain: From 2000-2010, U.S. CPI rose 27% while average domestic fare (excl. taxes) rose just 1%
Adjusted for inflation, the average round-trip domestic fare in 2010 fell 21% (from $398 to $316) compared to 2000
2007 domestic flight delays cost the United States approximately $31 billion
In 2011, the value of U.S. merchandise exported by air reached an all-time high of $424B
In 2011, U.S. exports of air-travel services reached an all-time high of $36.7B, driving the largest trade surplus in this category since 1992
In 2011, U.S. passenger and cargo airlines spent $50.5B on fuel, up $11.7B ($32M/day) from 2010
In 2011, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded
In 2011, U.S. airlines posted the lowest annual rate of involuntary denied boardings ever recorded
In 4Q 2011, U.S. airlines posted the second-lowest quarterly on-time arrival rate ever recorded
FAA projects U.S. air travel demand to top 1 billion passengers in 2024
In 2011, US airlines flew 80 million passengers in scheduled international service- a record high
In 2011, US airlines flew at 241.2 billion revenue passenger miles in scheduled international service- a record high
In 2011, US airlines operated 299.9 billion available seat miles in scheduled international service- a record high

	Taxes and Fees
	PubZone1 A vibrant U.S. airline industry is critical to U.S. economic growth and global competitiveness. Over the years, the government has imposed a growing burden of taxes and fees on aviation, travelers and shippers. In addition to traditional income and payroll taxes, airlines and their customers (passengers and shippers) pay many special taxes and fees to a variety of authorities, both at home and abroad, including taxes and fees for homeland security, environmental protection, disease control, infrastructure enhancement, airport and airway operations and maintenance and agency financing. In spite of the airlines’ enormous contribution to the economy, air travel is taxed at a higher federal rate than alcohol and tobacco – products that are taxed to discourage their use. Since 1990, the number of aviation taxes/fees has increased from six to 17; the total amount of taxes paid by the industry has grown from $3.7 billion to $17 billion over the same period. The tax burden on a typical $300 round-trip ticket has nearly tripled since 1972, rising from $22 (7 percent) to $61 (20 percent). Annually, airlines and their customers contribute $10 billion to $12 billion to the Airport and Airway Trust Fund; general aviation contributes about $200 million. Airlines and their customers already incur $3.4B-$3.8B per year in federally imposed security taxes/fees. Higher taxes raise costs. Typically, airlines cannot pass along these costs. Increases in the cost of air travel often result in decreases in travel demand and air service, which harms consumers through upward pressure on fares and fewer markets being served, slows economic growth and negatively impacts jobs. FAA reauthorization should ensure that government-imposed taxes/fees on airlines and their customers are fair and do not suppress growth. U.S. airlines have taken dramatic steps to curtail their costs in an effort to regain economic stability. Policymakers must reject tax policies that that contribute to industry instability and instead adopt policies that rationalize the industry’s tax and regulatory burden, restore and enhance U.S. airline viability, and enable airlines to increase air service, expand global competitiveness and boost economic growth and employment. PubZone2	A4A advocates measures to support aviation safety, security and well-being.