U.S airlines roll back fares to pre-shutdown level
2:33 PM
Charles dickens
,
U.S. airlines have began rolling back last month's fare increases, so passengers are likely to pay the same prices still though federal ticket taxes are being gathered again.
US Airways aforesaid it reduced fares late Monday, joining Southwest, AirTran, Delta, American, JetBlue, United, Continental and Frontier.
If that goes on consumers will pay the same total cost instead of seeing additions of around 10 percent on many tickets for travel within the U.S.
American Airlines and JetBlue Airways officials said they had lowered fares on some paths likely those where they contend with Southwest. Representatives for other airlines did not directly comment.
Most U.S. airlines raised fares last month after a draw between Republicans and Democrats in Congress on funding for the Federal Aviation Administration (FAA) caused federal excise taxes on tickets to expire. In effect, the airlines caught the money that previously went to the government alternatively of passing the tax break to consumers.
Last week Congress revitalized the taxes through Sept. 16. The challenge forced the FAA to furlough 4,000 employees and stop work on airport projects that employed thousands of construction workers.
Bad news for workers was good news for the airlines. By raising fares to offset the expired taxes, airlines were able to pocket an approximated $400 million in just two weeks.
Travel experts had anticipated that airlines would be forced to give up the fare hikes once the taxes were restored. They said travel demand is already slowing, and many consumers would balk at paying higher fares on top of taxes.
US Airways aforesaid it reduced fares late Monday, joining Southwest, AirTran, Delta, American, JetBlue, United, Continental and Frontier.
If that goes on consumers will pay the same total cost instead of seeing additions of around 10 percent on many tickets for travel within the U.S.
American Airlines and JetBlue Airways officials said they had lowered fares on some paths likely those where they contend with Southwest. Representatives for other airlines did not directly comment.
Most U.S. airlines raised fares last month after a draw between Republicans and Democrats in Congress on funding for the Federal Aviation Administration (FAA) caused federal excise taxes on tickets to expire. In effect, the airlines caught the money that previously went to the government alternatively of passing the tax break to consumers.
Last week Congress revitalized the taxes through Sept. 16. The challenge forced the FAA to furlough 4,000 employees and stop work on airport projects that employed thousands of construction workers.
Bad news for workers was good news for the airlines. By raising fares to offset the expired taxes, airlines were able to pocket an approximated $400 million in just two weeks.
Travel experts had anticipated that airlines would be forced to give up the fare hikes once the taxes were restored. They said travel demand is already slowing, and many consumers would balk at paying higher fares on top of taxes.
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