By Zandar
The airlines now think you're too stupid to notice the fact they are picking your pockets and have been for almost two weeks now.
The debacle could have had an upside for airline passengers because ticket taxes, which typically average about $30 on a $300 round-trip fare, are suspended during the shutdown.
Hey, that's great. 10% off airfare, at least that's not so ba... wait a frackin' minute.
But airlines decided to pocket the windfall. Within hours of the shutdown on July 23, most airlines raised their fares by amounts equivalent to the taxes that disappeared.Transportation Secretary Ray LaHood called airline CEOs to complain and lawmakers have sent letters demanding the fare hikes be reversed and the profits be placed in escrow. But their howls have largely been ignored. Airlines collectively lost about $440 million in the first six months of this year, according to the Air Transport Association.
Yeah, wondering why the Republicans left town for a month without doing anything about the FAA? How about a six-week plus stimulus package for the airline industry? Airlines boost ticket prices by 10% and you never notice the difference because that 10% was going to the FAA to cover the cost of airport maintenance and improvements. Airlines are now taking every dime of that and they're getting away with it.
The invisible hand of the free market just grabbed your wallet.