Congress Urged to Tackle Rising Airline 'Junk Fees' with Tax Reform

Airline fees have generated $12.4 billion from 2018 to 2023, largely due to a tax loophole that exempts fees from the 7.5% excise tax on airfare, encouraging airlines to shift costs from fares to fees. This practice, coupled with limited competition due to government policies, restricts consumer choice. While the U.S. Department of Transportation has introduced rules for fee transparency, airlines are challenging these in court. The article argues for more competition and a reevaluation of the tax policy to address these issues.