Some Airlines Reportedly Increase Margins While FAA Is Partially Shut Down | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-05.13.24

Airborne-NextGen-05.14.24

Airborne-Unlimited-05.15.24 Airborne-AffordableFlyers-05.16.24

Airborne-Unlimited-05.17.24

Tue, Aug 02, 2011

Some Airlines Reportedly Increase Margins While FAA Is Partially Shut Down

Base Fares Raised While Taxes Suspended. Passengers Told To Talk To The IRS

Some U.S. airlines are reportedly padding their bottom lines during the partial shutdown of the FAA by raising base fares to levels that would normally include FAA taxes and fees, while other carriers have kept base fares the same to reflect taxes that are not being collected.

In a story posted on the Huffington Post, the Associated Press reports that Delta, Jet Blue, United, Continental, and US Airways have raised base fares to a level that the customer would normally see when paying taxes and fees. But since they are not remitting those taxes to the government during the FAA slowdown, they are increasing their profit margins. Virgin America, Alaska Airlines, and Frontier Airlines are among the carriers which have kept base fares level, resulting in a lower overall fare.

JetBlue, United, and Continental have posted notices on their websites directing passengers to submit a claim for a refund to the IRS. The IRS says that, while submitting a claim to the tax agency is an option, it should be a last resort. They are saying that the passengers should seek a refund through the airlines before submitting the IRS claim.

Transportation secretary Ray LaHood says that the shutdown is costing the U.S. Treasury some $30 million a day in uncollected taxes.

FMI: www.irs.gov

Advertisement

More News

Classic Aero-TV: Remembering Bob Hoover

From 2023 (YouTube Version): Legacy of a Titan Robert (Bob) Anderson Hoover was a fighter pilot, test pilot, flight instructor, and air show superstar. More so, Bob Hoover was an i>[...]

ANN FAQ: Follow Us On Instagram!

Get The Latest in Aviation News NOW on Instagram Are you on Instagram yet? It's been around for a few years, quietly picking up traction mostly thanks to everybody's new obsession >[...]

ANN's Daily Aero-Linx (05.15.24)

Aero Linx: B-52H Stratofortress The B-52H Stratofortress is a long-range, heavy bomber that can perform a variety of missions. The bomber is capable of flying at high subsonic spee>[...]

ANN's Daily Aero-Term (05.15.24):Altimeter Setting

Altimeter Setting The barometric pressure reading used to adjust a pressure altimeter for variations in existing atmospheric pressure or to the standard altimeter setting (29.92).>[...]

Aero-News: Quote of the Day (05.16.24)

"Knowing that we play an active part in bettering people's lives is extremely rewarding. My team and I are very thankful for the opportunity to be here and to help in any way we ca>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC