Economics & Energy

Passenger Facility Charges

With congressional approval, commercial airports controlled by public agencies could begin imposing passenger facility charges (PFCs)--collected via fees levied on 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 %
Airside (i.e., runways, taxiways, aprons, equipment, planning lighting) 18
Landside (i.e., terminal, security) 36
Noise Abatement (i.e., land acquisition, soundproofing, monitoring, planning) 5
Access (i.e., roads, rail, land, planning) 6
Interest (i.e., payments on outstanding debt for eligible capital improvements) 31
Denver International Airport (payoff of 1990s construction) 5
TOTAL PFCs 100

As of July 1, 2008:

  • 372 locations (incl. 291 at $4.50) were approved to collect PFCs, incl. 95 of the top 100 airports
    • 336 of those approved were in fact collecting
  • Only four applications -- Austin, TX (AUS), Naples, FL (APF), Peoria, IL (PIA) and St. Augustine, FL (UST) -- out of 1,644 had ever been disapproved
CALENDAR YEAR PFC COLLECTIONS ($) Weighted Avg. PFC Paid ($)
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 3.16
2005 2,447,660,596 3.32
2006 2,586,623,045 3.50
2007 2,806,097,619 not available
2008F 2,723,000,000 not available

Notes:
2004 value includes $8,155,034 in corrections to actual collection amounts reported for 1992-2003.
2007 value includes -$18,093,832 in corrections to actual collection amounts reported for 1992-2007.

Last Modified: 7/25/2008

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