How the New Administration Could Trigger a Surge in Airfares

Depending on how the current administration’s budget develops, airline ticket prices could edge higher in 2017.

One fee baked into ticket prices is the federal security fee, which passengers often don’t notice at booking. That fee is currently $5.60 per ticket, but a proposed budget item could raise it by about $1. The proposal would require travelers to cover up to 75 percent of the cost of airport security operations overseen by the Transportation Security Administration.

Another common charge that could increase is the passenger facility fee (PFF). At present the PFF is typically $4.50 per flight segment. Because it’s applied per leg, travelers on itineraries with connections can pay the fee multiple times—$9 for a two-leg trip, for example. The Federal Aviation Administration collects passenger facility fees to fund improvements in airport terminals, including projects that enhance capacity and security.

Individually these fees may seem modest, but together they can add several dollars to the total cost of a ticket. For travelers who frequently take connecting flights or book multiple trips, incremental increases in these mandated fees would accumulate and contribute to higher overall travel expenses.

The final impact will depend on what elements of the proposed budget are approved and how airports and airlines adjust their pricing. If the security fee and passenger facility fee are increased, consumers are likely to see slightly higher line-item surcharges on ticket receipts rather than major changes in base fares. Still, the cumulative effect of small fee increases can be noticeable for regular flyers and families booking multi-leg journeys.

As budget deliberations continue, passengers who want to limit added costs can consider direct nonstop routes when possible, compare total ticket prices—including taxes and fees—across carriers, and monitor announcements from the Department of Transportation, the TSA and the FAA for updates on any approved fee changes.