First read is on us.

Subscribe today to keep up with the latest travel industry news.

This is good: What if airline checked-bag fees were taxed?


Skift Take

Bag fees are a tax dodge for airlines because ticket prices are taxable and bag fees aren't. Taxpayers end up making up the difference to fund the aviation system.

To keep airfares down as fuel costs rise, airlines charge fees - some of which are federal-tax exempt - for reservation changes, seating, early boarding, meals, entertainment and baggage. Untaxed baggage fees in particular have generated $12.8 billion for airlines since 2007. If taxable, the revenue would help federally fund the air transportation system.

Up Next

Experiences

How Travel Brands Can Seize the ‘Q5’ Opportunity on TikTok

Driven by increased spending on experiences and the digital habits of younger audiences, TikTok has emerged as a key platform for inspiring and shaping travel decisions. Leveraging the platform’s reach early in the year presents a unique opportunity for travel brands to connect with eager travelers.
Sponsored