Strategic Policy

Five Reasons to Oppose an Increase to the Passenger Facility Charge

February 07, 2019

WASHINGTON, Feb. 7, 2019 – Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, outlined five reasons to reject any increase in the airport tax, also known as the Passenger Facility Charge (PFC).

1. Airports are not able to justify the need to increase taxes on travelers:

Airports can’t identify a single project nationwide that is not getting done due to a lack of resources. Not one!

2. The Aviation Trust Fund is at record levels and growing:

While other modes of transportation face funding shortfalls, the aviation trust fund has an almost $7 billion surplus. That is money sitting unused, just waiting to be spent. In fact, CBO projects the trust fund to soar to $47.7 billion by 2029.

3. Travelers and airlines are already providing billions for airport infrastructure:

Customers already pay $6.9 billion per year in airport taxes, helping airport revenues to soar to a record of nearly $30 billion. PFC revenues hit an all-time high of $3.5 billion in 2018, more than doubling since 2000 and growing over twice the rate of inflation. Airport modernization is thriving with $165 billion invested in the nation’s largest airports alone and robust development at smaller airports and cargo facilities as well.

4. Airports are flush with cash and diverting billions of dollars:

Airports are sitting on $14.5 billion in cash on hand. They also diverted $5.4 billion over the last 10 years. That’s money already collected from travelers — the same ones they now want to hike taxes on — that airports siphoned away to pet projects off the airport instead of putting toward infrastructure needs.

5. Higher tax won’t fly with consumers:

All-in airfares adjusted for inflation are historically low; investment in our airports is at an all-time high; and the pot of money airports have to fund projects continues to grow. Consumers shouldn’t be left holding the bag for a tax hike airports don’t need.

To learn more about the PFC, visit www.stopairtaxnow.com.