Airports don’t need more money; they are already collecting record levels of revenues. In 2017 alone, airlines collected a record $21.9 billion in airline and nonairline rents and fees. Passenger taxes also fund the Airport and Airway Trust Fund (AATF), which supports airport projects around the country through the Airport Improvement Program. The AATF is stable with an uncommitted balance of almost $6 billion — a number projected to soon rise to $8.7 billion — providing a secure funding source for airport projects. Airports have almost $14.5 billion in unrestricted cash and investments and easy access to the bond market, which are at historically low interest rates given their investment-grade ratings. There is no need to “modernize” — or rather increase — the Airport Tax on the backs of passengers because airports have plenty of money.

American consumers are overburdened with federal taxes and fees. Today, federal taxes constitute 21 percent, or $64, of a typical domestic one-stop, round-trip ticket. Every dollar increase in the PFC will cost consumers $800 million more annually in taxes. If airports get their tax increase, the sky is the limit. This is real money taken directly out of the pockets of American families.

Raising the PFC tax would curb the expansion of U.S. air service and air travel growth. Air travelers are price-sensitive and even the smallest increase in airline ticket costs has a negative impact on travel decisions. In December 2014, the U.S. Government Accountability Office (GAO) found that increasing the PFC cap would slow passenger growth and reduce revenues in the AATF. New facilities can be funded through the existing array of airport finance mechanisms. Higher PFCs will discourage travel and, moreover, will hamper airlines ability to expand air service if faced with higher costs. In fact, higher PFCs might hurt competition as increased costs will disproportionately impact low-fare carriers who serve a larger share of price-sensitive customers.

The AATF already has a healthy almost $6 billion uncommitted balance. In addition, PFC revenues are not deposited into the AATF; they are remitted directly to the charging airports. The only effect a higher PFC would have on the AATF, as noted by the GAO, is to slow passenger growth and reduce revenues.

Americans understand the PFC modernization jargon that airports are using to disguise their desire to hike the Airport Tax. Americans understand the PFC modernization jargon that airports are using to disguise their desire to hike the Airport Tax. In fact, a 2017 nationwide survey of nearly 2,000 voters showed that 89 percent of respondents oppose hiking the PFC.