Why is the airline fuel fee a tax?
The price of my flight is shown in the picture below.
I want to understand the airline fuel fee better.
- Is it still legal to call it an "airline fuel fee"?
- Why is the airline fuel fee considered a tax?
To explain my questions:
It came to my attention that the fare price compared to the amount of taxes is unreasonably high. But the biggest chunk of taxes is one thing that isn't a tax anyway. The airline fuel fee.
I've read that the fee came from the high oil price era. The time is over and since it's not allowed to call it like that anymore, I think some airlines simply changed the name without changing the charge itself. Is it just a sloppy mistake to still use the name or is it still okay to do so?
If the fuel fee is just a label to distribute the costs on another point, why is it allowed to call a tax? Again is it just a sloppy way to write it down? All other costs in taxes are not taxes per se, but at least costs the airline has to pay and is not allowed to keep. Still the fuel fee is different.
The intention of this question is not to complain but to understand.
Best Answer
There are few points which may be relevant:
in most cases the language has been changed to “taxes and surcharges” or “taxes and fees” to better reflect these various components. Some sites / channels may not have been updated.
since the advertised price usually includes these taxes and surcharges, they are in most cases not relevant for the passenger. They are mostly a way for airlines to tell people “hey look, you can see here that a lot of the cost is not our fault, we’re just passing along things we have no control on”...
Pictures about "Why is the airline fuel fee a tax?"
Which tax is imposed by the airline?
Federal Excise Tax: A federal excise tax of 7.5% is charged on all domestic flights. Airlines must include that tax in their advertised fares - a rule set out by the Department of Transportation (DOT). Segment Fee: A segment fee of up to $4.20 USD applies per flight segment (domestic and international).Is aviation fuel taxed in UK?
In the UK, airlines pay no tax on jet fuel and there's no VAT on tickets.Can airlines add fuel surcharges?
Technically levied as \u201ccarrier-imposed surcharges,\u201d a fuel surcharge is the generic term for extra fees that some airlines charge in addition to the base airfare. This arbitrary fee is decided on by each airline and generally depends on the route. If you're paying cash to book a flight, fuel surcharges are irrelevant.What is an airline surcharge?
A carrier imposed fee, or an airline fuel surcharge, is exactly what it sounds like \u2014 an extra charge on top of the cost of airfare, ostensibly to cover the cost of airline fuel.EXCESSIVE AIRLINE TAXES, FEES, PHONY FUEL SURCHARGES EXPOSED
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