PositionAndHold
Well-Known Member
Which they've more than made up for using those checked back fees (I use "made up for" loosely, as a dime never leaves the airlines pocket). Through taxes on tickets, airline passengers payed 8.7 million dollars in taxes to the FAA trust fund. Delta and United alone made 1.571 Billion dollars in bag fees in 2012. Billion with a B. The airlines use air travel and the air traffic infrastructure to make money. GA flying uses their aircraft as a tool to further their business and not all GA is business flying. So we pay our share into the system we all use via a tax on gasoline. This really isn't about evil rich a holes in the back of biz jets.I already explained that. A given city pair will only support a certain price point. If that price point is $300, and $50 is taxes, then the airline is only getting $250. If the taxes were only $25, then the price point that the market would support would still be $300, but the airline would be collecting $275 of it.
Airlines charge the maximum that the market will support. But that price has to include taxes and fees, since they are required to include them in the quoted price, unlike checked bag fees and other ancillary fees.
To get back to airlines pricing and route structure. If an airline pulls out of a route because they can't make money on it, they don't lose a thing. The consumer (the ones that pay into the FAA trust) do. So what if an airline doesn't fly a certain route, there are plenty of routes out there that are under served for good reason. There isn't any customers, not a tax structure that's too costly.
Here's where I got the fee numbers,
http://www.cnn.com/2013/05/15/travel/airline-fee-revenue-increases