Economics & Energy

Passenger Facility Charges

With congressional approval, commercial airports controlled by public agencies began imposing passenger facility charges (PFCs)--collected via airline tickets--on June 1, 1992, at up to $3.00 per passenger enplanement ($12.00 per round trip). With enactment of AIR-21, Congress raised the cap to $4.50 ($18.00 per round trip) effective April 1, 2001. PFCs are federally authorized but levied by local airport operators, which set the amounts. PFCs can fund only federally approved capital improvement projects "that enhance safety, security, or capacity; reduce noise; or increase air carrier competition."

ALLOCATION OF PFC FUNDS APPROVED BY FAA
FOR COLLECTION as of Mar. 1, 2010
$ Millions
Airside (i.e., runways, taxiways, aprons, equipment, planning lighting) 12,029
Landside (i.e., terminal, security) 26,404
Noise Abatement (i.e., land acquisition, soundproofing, monitoring, planning) 3,202
Access (i.e., roads, rail, land, planning) 5,154
Interest (i.e., payments on outstanding debt for eligible capital improvements) 24,303
Denver International Airport (payoff of 1990s construction) 3,137
TOTAL PFCs 74,229

As of Mar. 1, 2010, 380 locations (including 318 at $4.50) were approved to collect PFCs, including 98 of the top 100 airports. [Note: Only five applications have ever been disapproved: APF, AUS, MCO, PIA and UST.] For the approved locations, the weighted average PFC charged amounts to $4.25. Of those approved, 348 were collecting.

CALENDAR YEAR PFCs ($) Remitted by Airlines
to U.S. Airports1
Weighted Avg.
Net PFC ($) Incurred2
1992 85,437,686 unknown
1993 485,112,053 unknown
1994 849,330,244 unknown
1995 1,046,234,802 unknown
1996 1,113,999,014 1.79
1997 1,222,882,438 1.91
1998 1,448,671,813 2.21
1999 1,514,695,981 2.21
2000 1,557,221,630 2.19
2001 1,585,700,220 2.40
2002 1,856,714,907 2.88
2003 2,014,991,244 3.10
2004 2,231,141,330 3.17
2005 2,447,660,596 3.33
2006 2,586,623,045 3.51
2007 2,806,097,619 3.68
2008 2,660,223,961 3.63
2009 2,521,804,852 n/a
  1. The amount remitted by the airlines (to the collecting airports), excluding compensation received for collecting, handling and remitting the charge (see 14 CFR Part 158.53). At the outset of the PFC program, airlines were entitled to compensation of 12 cents per PFC remitted. On June 28, 1994, the amount was reduced to 8 cents per PFC remitted. In a process that started in April 2000 and concluded in March 2004, the rate was increased to 11 cents per PFC collected.
  2. Imputed average ($0.00 to $4.50) incurred, net of airline compensation described in footnote 1, by all passengers enplaning at U.S. airports. If only those passengers enplaning at airports levying PFCs were included, the calculated average would be higher. Publicly available data does not permit such a calculation.

Last Modified: 3/1/2010