Airlines have been adding and/or raising fees for years now. This time, it’s the government doing it. Here’s my take on it.
Government Raises TSA Security Fee
Right now about two-thirds of all domestic itineraries in the U.S. are non-stop round-trip flights and currently incur a TSA fee of $5, or $2.50 each-way, and most international trips incur this same $5 round-trip fee. Now these folks will pay $11.20 round-trip. That’s an increase of 125 percent, regardless of distance traveled.
Passengers and Price Sensitivity
This year alone, airlines have failed nine different times in efforts to increase domestic leisure airfares by as little as $4 round-trip. This was due in large part to the price sensitivity of travelers in the current economy. This new fee, while being absorbed directly by passengers, is going to cause carrier heartburn in ticket sales, especially on the shorter, $250 or less round-trip price point routes.
Airfare Analysis: Bottom Line
The bottom line? With taxes and fees being over 20 percent of the total ticket cost for many domestic flights, enough is enough. I am pretty sure most air travelers (including myself) would rather see it decreasing, not increasing.