Airlines roll back fares; taxes return
Southwest Airlines Co. and its AirTran Airways subsidiary lowered fares Sunday night and were matched by Delta Air Lines Inc., AMR Corp.'s American Airlines, JetBlue Airways Corp. and others. (Feb. 28, 2011) Credit: AP
Airlines are rolling back prices to where they were before the government lost its authority -- temporarily -- to tax tickets.
The difference can add up. Federal excise taxes, which went back into effect yesterday, add more than 7.5 percent to the cost of a flight.
Southwest Airlines Co. and its AirTran Airways subsidiary lowered fares Sunday night and were matched by Delta Air Lines Inc., AMR Corp.'s American Airlines, JetBlue Airways Corp. and others.
United Continental Holdings Inc. held out until yesterday afternoon before reducing fares. US Airways Group Inc. was still charging the higher prices, a spokeswoman said.
Most U.S. airlines had raised fares after a standoff in Congress caused federal excise taxes on tickets to expire July 23. In effect, the airlines grabbed the money that had gone to the government. By doing so, they were able to pocket an estimated $400 million in two weeks.
Last week, Congress approved reviving the taxes, which fund the Federal Aviation Administration, through Sept. 16.
Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.
Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.
