**GAO-10-785**                      Published: Jul 14, 2010. Publicly Released: Jul 14, 2010.                  

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## Highlights

To supplement fare revenues, airlines are increasingly charging fees for optional passenger services, notably for checked baggage, for which separate charges did not previously exist. While air fares are subject to a 7.5 percent excise tax that funds the Airport and Airway Trust Fund, which helps fund the Federal Aviation Administration (FAA), many new optional fees are not. As requested, this report addresses (1) the nature, relationship to cost, and disclosure of airline fees, (2) the potential impact of such fees on the Airport and Airway Trust Fund, (3) checked and mishandled baggage issues; and (4) the process, if any, for refunding government-imposed taxes and fees when passengers do not use nonrefundable tickets. To perform this work, GAO analyzed financial data; reviewed applicable laws and regulations; and interviewed airline and government officials.

## Recommendations

## Matter for Congressional Consideration

## Recommendations for Executive Action

See All 6 Recommendations

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Full Report (50 pages)

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## GAO Contacts

Gerald L. Dillingham
dillinghamg@gao.gov

(202) 512-2834

## Office of Public Affairs

Sarah Kaczmarek
kaczmareks@gao.gov

(202) 512-4800

## Topics

Business Regulation and Consumer Protection

Air transportationAirlinesBaggageCommercial aviationConsumer protectionExcise taxesFeesInformation disclosurePrices and pricingTaxesTravel

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##### Disclosure of Airline Service Fees

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