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How can the tax and fees exceed the air fare?

How can the tax and fees exceed the air fare?

Old Mar 16, 2024, 2:28 pm
  #1  
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Join Date: Dec 2019
Posts: 34
How can the tax and fees exceed the air fare?

I found a business airfare from the US to London. While the price was great, I am blown away that the taxes and fees exceeded the actual airline portion of the trip cost. In fact, the tax and fees were almost twice the airline cost.

Cost Details

Total Trip Cost

$3,632.70

Round trip, 1 Adult1 Adult

$1,310.00

Taxes & Fees$2,322.70
Traciely is offline  
Old Mar 16, 2024, 2:40 pm
  #2  
 
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Originally Posted by Traciely
I found a business airfare from the US to London. While the price was great, I am blown away that the taxes and fees exceeded the actual airline portion of the trip cost. In fact, the tax and fees were almost twice the airline cost.

Cost Details

Total Trip Cost

$3,632.70

Round trip, 1 Adult1 Adult

$1,310.00

Taxes & Fees$2,322.70
Just a heads up, this forum is not a place for questions like this, Im sure the mods will move your question to the relevant area shortly. This forum is only for posting specific premium airfare deals.

But to answer your question, this is extremely normal. Your airfare actually consists of three parts. A base fare, a carrier surcharge also known as a fuel surcharge, and the government taxes. For many fares, especially premium fares, the carrier surcharge is often as much as the base fare, but they lump it into the carrier fees and taxes category. Its been this way for many years now.

All that really matters is what the end price is with everything added together.
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Old Mar 16, 2024, 2:48 pm
  #3  
 
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Location: AMS
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And the reason it's this way is that many individual fares are files per route, but all will include the carrier surcharge. If the airline wants to change one fare, it just changes that filing - if it wants to change all fares, then it's much easier to change the carrier surcharge. From your point of view, both of these are "fare" paid to the airline.
etiene is offline  
Old Mar 16, 2024, 2:51 pm
  #4  
 
Join Date: Dec 2021
Location: Northeast
Posts: 240
First, wrong forum.

Second, it's totally normal and just how it works. YQ/YR take a very high proportion of transatlantic fares from US. If you look at the breakdown, it will show you that YQ/YR costs around $1900 for your fare.

YQ/YR are part of airline's revenues. Just a few weeks ago, there were BOS/JFK - AMS on DL/KL Biz for $2059 with a total of $7 base fare and $1910 in YQ/YR.
SourSweetTea is offline  
Old Mar 16, 2024, 2:55 pm
  #5  
 
Join Date: Feb 2016
Location: CLT
Posts: 1,861
Most tickets are like this!

Some countries may tax the carrier imposed fees differently than the base fare too, so it may be advantageous to make one larger than the other.
cruser1 is offline  
Old Mar 16, 2024, 7:01 pm
  #6  
 
Join Date: Mar 2006
Location: Hotlanta.
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Also, corporate discounts are usually off the base airfare and do not discount the fees and taxes. So, it's a way for the airlines to game corporations.
emma dog is online now  

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