What is airport tax?
Airport taxes are levied on passengers who pass through an airport. They are generally imposed on passengers for the use of the airport. These taxes help pay for the maintenance and full operation of the airport and are usually included in the price of an airline ticket.
Airline reservation software is customer-facing and allows airline travelers to book flights. These software systems take key booking factors into account, including tax rates for each flight.
Airline employees use this type of software to manage the entire reservations process, which can be complicated. Airline customers use the application to book tickets to their next destination.
How airport tax works
Airlines pay a landing fee to land at a particular airport. The fees are transferred to customers through the price of their airline tickets. These fees appear as taxes when a customer books a flight.
The revenue earned from airport taxes is used for different functions, including homeland security, building infrastructure and maintenance, construction needs, airport operations, and environmental protections. This revenue supports and sustains airports and their various projects and needs.
Types of airport tax
There are different types of airport taxes, including:
- The Passenger Fee, or the September 11th Security Fee, is a tax for trips originating at a United States airport. Air carriers remit this fee to the Transportation Security Administration (TSA) to help finance security costs.
- Overflight Fees are for flying in, out, or through controlled airspaces. The Federal Aviation Administration (FAA) charges overflight fees.
- Passenger facility charges (PFCs) for travelers in the United States go toward the maintenance and upkeep of airports approved by the FAA. FAA-approved projects include enhanced security, safety, or capacity, as well as noise reduction efforts and increased air carrier competition.
- International Arrival and International Departure are taxes for international travel. These passenger taxes vary across countries.
Airport tax factors
The amount of airport tax a passenger pays depends on various factors. Many considerations go into airport tax amounts, including:
- Airline: Different airlines charge different fees. However, airlines must include the U.S. government-imposed excise tax on all domestic tickets.
- Flight time: The duration of a passenger’s flight impacts airport taxes.
- Travel distance: The distance a passenger travels can affect passenger taxes, mainly whether a flight is domestic or international.
- Departure and arrival airports: Certain airports charge more taxes than others. Departure and arrival locations affect the total taxation amount. Smaller airports tend to have lower taxes than major hubs because demand is significantly lower.
Alyssa Towns
Alyssa Towns works in communications and change management and is a freelance writer for G2. She mainly writes SaaS, productivity, and career-adjacent content. In her spare time, Alyssa is either enjoying a new restaurant with her husband, playing with her Bengal cats Yeti and Yowie, adventuring outdoors, or reading a book from her TBR list.
