Airlines taking savings from expired taxes
Airlines are tossing consumers aside and grabbing the benefit of lower federal taxes on travel tickets. By Saturday night, nearly all the major U.S. airlines had raised fares to offset taxes that expired the night before.
That means instead of passing along the savings, the airlines are pocketing the money while customers pay the same amount as before.
American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue all raised fares, although details sometimes differed. Most of the increases were around 7.5 percent.
For consumers who wanted to shop around, only a few airlines were still passing the tax break on to passengers Saturday night, including Virgin America, Frontier Airlines and SeaTac’s Alaska Airlines.