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.
Out East Show: Shrine of Our Lady of the Island, Browder's Birds & Sheep Shearing, and Bennett Shellfish in Montauk NewsdayTV's Doug Geed takes you to a few special places 'Out East'
Out East Show: Shrine of Our Lady of the Island, Browder's Birds & Sheep Shearing, and Bennett Shellfish in Montauk NewsdayTV's Doug Geed takes you to a few special places 'Out East'
