Glad somebody is making money this summer

The airlines should be thanking Congress for failing to agree on a funding package for the FAA. The impasse means that commercial carriers get to pocket a total of $28.6 million in aviation taxes - as much as $1.3 billion through Sept. 7, when Congress resumes legislative business. From Bloomberg:

The largest U.S. carriers, including United, Delta Air Lines Inc. and Southwest Airlines Co. stand to reap that much new revenue after raising fares to mirror the suspended taxes and keeping the difference, said Rick Seaney, chief executive officer of Dallas-based ticket researcher FareCompare.com. "This is manna from heaven, and a real windfall for the airlines," Seaney said in an interview. "I don't expect them to drop the fare increases. Why would they? Total ticket prices are the same and it doesn't seem to be hurting bookings."

Question: Whenever the FAA dispute is resolved and the airlines have to resume paying the tax, will they lower their fares?


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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