NBTA and IBTM Release Study on Air Fares and Taxes Paid by Business Travelers

Using data from the Department of Transportation (DOT), the research presents an index reporting the level and percentage change in business air fares and taxes from 1989 to 2002. Highlights of the study include:

• The base fares for business travelers excluding taxes have increased 10.4% since 1989, while fares for all other travelers have only increased 2.4%
• The base fares for business travelers including taxes has increased 16% since 1989, thus the higher taxes that business travelers must pay account for more than one-third of the increase in their fares.
• Air travel taxes have increased 90%, jumping from 8% of the base fare in 1989 to 14% of the base fare in 2002.
• Nearly 70% of business travelers in the study sample fly on a restricted economy fare, 25% fly on regular economy fare, while less than 5% travel first class and business class fare.

"While air travel taxes and fees are necessary to pay for airport facilities, security and traffic control, the study shows that high ticket taxes and fees are placing a burden on the traveling public and those who cater to their needs," said IBTM Chairman Fred Miller.

To address this issue, NBTA has urged Congress to avoid placing additional security fees on the traveling public and to protect funds designated for airport improvements. NBTA approves the signing of the Supplemental Bill by President Bush today, which temporarily suspends airline fees related to federally mandated security costs.

"NBTA applauds President Bush and the Congress for providing relief to the traveling public through a four-month suspension of aviation security fees," said NBTA President Kevin Iwamoto. "This is definitely a step in the right direction. As the recent NBTA and IBTM study suggests, we can do even more in the future to address the appropriateness of air travel user fees and taxes."

The National Business Travel Association (NBTA), established in 1968, represents over 2,400 corporate travel managers and travel service providers. NBTA members manage and direct more than 70% of expenditures within the business travel industry. NBTA is committed to the professional development of its members and offers educational and training opportunities. It is the source for critical information on the business travel industry.