NEWS RELEASE
WASHINGTON, Nov. 17, 2004 – The Air Transport Association today said it expects a record number of more than 16.3 million travelers during the Thanksgiving holiday, traditionally the busiest travel period of the year.
That compares to 15.9 million passengers in 2003 and is believed to be the largest number of Thanksgiving travelers on record. According to industry analysts, it also puts the industry on pace to carry a record 685 million passengers in 2004, a 3 percent increase from 2000, the busiest year on record.
While record low air fares are the chief catalyst for the surge in air travel, ATA officials noted that federal taxes and fees on air travel also are at an all-time high, making U.S. airline passengers one of the most heavily taxed group of travelers in the world. The federal government and airports will collect hundreds of millions of dollars from U.S. airlines and travelers during the Thanksgiving holiday, which is clearly money that U.S. airlines and travelers would prefer to spend themselves to stimulate the U.S. economy.
According to ATA, the federal tax and fee burden on a typical $200 domestic round-trip ticket is $52, or 26 percent of the ticket price. For the average American family of four traveling over the Thanksgiving holiday, this federal “turkey tax” amounts to $208, or the price of:
- 6 complete turkey dinners for 4-6 people ($34.99*)
- 10 large whole turkeys ($20.80 each)
- 17 liters of premium dark rum for hot butter rum drinks ($11.93 each)
- 40 pumpkin pies ($5.20 each)
- 62 pumpkin spice lattes at Starbucks ($3.35 each)
- 68 frozen turkey dinners ($3.05 each)
- 72 boxes of stuffing ($2.89 each)
- 136 cans of cranberry sauce ($1.53 each)
- 164 quarts of eggnog ($1.25 each)
- 301 pounds of large russet potatoes (69 cents per pound)
- 1 NFL season of satellite pay-per-view ($199)
* $34.99 is the Safeway deli price for a complete turkey dinner, serving 4-6 people http://www.safeway.com/HolidayDinner.asp.
Federal taxes and fees on air travel have steadily increased over time while average fares have not kept pace with U.S. inflation. Today, the average airfare in nominal dollars is on par with fares from 1988. Plus, U.S airlines also are facing increased fuel prices in 2004, which are 30 percent higher than 2003.
For a graphic demonstrating the steady increase in the federal government’s appetite for aviation taxes, go to the ATA web site: http://www.airlines.org/files/gobblegobble.JPG.
The Air Transport Association is the trade association representing the nation’s leading airlines. For more information about the industry, visit www.airlines.org.
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