Greedy Airlines Take Advantage of Tax Holiday, Raising Prices And Making Millions
According to ABC News, airlines are taking a tax holiday thanks to Congress’ failure to re-authorize the FAA Friday. To make sure they make the most of the tax breaks, airlines are not passing the savings onto the public, but hiking up ticket prices and watching profits rise.
While the tax money was, of course, never theirs to begin with, airlines have decided to take advantage of the break, and consumers, by raising prices and pocketing what would have been federal funds. Should they have had a more egalitarian, consumer-sensitive approach, passengers could have saved up to 15 percent on airfare, with no profit losses to airlines.
American, JetBlue, Southwest/AirTran, and U.S. Airways all raised fees in anticipation of the tax holiday, and Delta, United/Continental, Frontier, and Virgin America upped their prices over the weekend.
ABC News said airlines are making $200 million a week, so long as FAA stays shutdown.
Watch video coverage of the price hike on Good Morning America here.