Nick Calio, President and CEO of Airlines of America, appeared on CNBC’s Squawk Box to address the troubling new proposal in Congress to raise taxes on the 2.4 million passengers who take to the skies every day.
“Most people don’t realize that every time they fly, 21 percent of the ticket cost is taxes and fees paid to the federal government,” Mr. Calio said. “If you buy a $300 round trip ticket, you’re already paying $62 in federal taxes and fees. What we have here are the airports and some politicians, just simply wanting more and it’s unnecessary.”
Last year alone, passengers and airlines paid $11 billion to airports, with $7 billion still available in the Airport Trust Fund. The funds to improve airports already exist, and it’s unnecessary to overtax consumers. Further, local politicians need to stop diverting funds from the airport trust fund to fund other pet projects because that stands in the way of actual airport investments that would benefit passengers.
“About a billion dollars a year gets diverted out of the Airport Trust Fund,” Mr. Calio said. “Before the Congress decides to increase taxes on passengers, it ought to end that practice.”
Today, more people than ever before can afford to fly and take advantage of the safest and quickest mode of transportation in the world, but a bump in ticket taxes will raise costs on the average American family, just looking to take a summer vacation together.
“We’re going to fight this because our passengers pay too much already in taxes and fees.”
For more information on this topic, read Mr. Calio’s opinion piece in The Hill here.