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Fees and Taxes????


kitty9

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I was looking at flights from PIT to LHR and found a round trip fare for around $1170, coach. On their website, Delta listed a breakdown of tha fare which was approx $523 for the ticket and the remaining charge was for "fees and taxes". These fees and taxes, over $600, baffled me. I understand the taxes bit, but what are the fees? IMHO, for the taxes and fees to be higher than the fare seems way strange.

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I understand the taxes bit, but what are the fees? IMHO, for the taxes and fees to be higher than the fare seems way strange.

 

I can't speak for the high price of taxes and fees, but Delta attempts to explain them, via their website. (Perhaps it's an error, you may want to call the airline and confirm with a representative). Here is a link to the 'Taxes and Carrier- Imposed Fees' page, hope this helps: http://www.delta.com/content/www/en_US/traveling-with-us/planning-a-trip/booking-information/fare-classes-and-tickets/taxes-and-fees.html

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Between the UK Air Passenger Duty, the departure tax (40 GBP per person on international flights) and each seat's share of the landing fees, Delta will be paying various agencies around $500 per passenger round trip from Heathrow. Or more accurately, collecting the money from you to be paid to the government on its behalf. Still, $1170 round trip to Heathrow is a good deal; haven't seen fares that low from Florida to the UK in quite some time (other than taking a 6 hour layover in Reykjavik).

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Here's the breakdown on the taxes and fees, pulled from ITA -

(PIT-LHR-PIT base fare - $390.05)

 

(YR) $458.00

US International Departure Tax (US) $17.20

US September 11th Security Fee (AY) $7.50

US Passenger Facility Charge (XF) $13.50

USDA APHIS Fee (XA) $5.00

US Immigration Fee (XY) $7.00

US Customs Fee (YC) $5.50

United Kingdom Air Passengers Duty (GB) $102.80

United Kingdom Passenger Service Charge (UB) $61.00

US International Arrival Tax (US) $17.20

Total taxes and fees $694.70

 

Total cost, one passenger - $1084.75

 

YR is a fuel surcharge, simply revenue to the airline. It's not a tax or a government-imposed fee. This also shows up (more frequently) under code YQ on other airlines.

 

Often by calling the fuel surcharge (aka "fuel fine") a fee and not making it included the fare, the airline is free to impose it on frequent flyer mileage redeemers as a cost over and above the cost of the miles used for awards. This reduces the "value" of the redeemed miles hugely, as you can imagine. British Airways is the biggest culprit in doing this.

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Here's the breakdown on the taxes and fees, pulled from ITA -

(PIT-LHR-PIT base fare - $390.05)

 

(YR) $458.00

 

YR is a fuel surcharge, simply revenue to the airline. It's not a tax or a government-imposed fee. This also shows up (more frequently) under code YQ on other airlines.

 

Often by calling the fuel surcharge (aka "fuel fine") a fee and not making it included the fare, the airline is free to impose it on frequent flyer mileage redeemers as a cost over and above the cost of the miles used for awards. This reduces the "value" of the redeemed miles hugely, as you can imagine. British Airways is the biggest culprit in doing this.

 

It's not really a fuel surcharge, given it exceeds the airlines total fuel cost per seat. They just fraudulently call it that.

 

You can work out BA's current fuel costs, from their 2012 financials, per seat-Km

 

Total BA Fuel, oil and emission costs: £3,712m

Total BA Available seat kilometres (ASK): 158,247m

3712m/158247m = £0.024 ASK

Distance PIT-LHR-PIT = 11,973km

 

hence, fuel cost for a return seat PIT-LHR-PIT per their financials

£287.35 = $439.24

 

 

 

Refs:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc1Njk3fENoaWxkSUQ9LTF8VHlwZT0z&t=1

http://www.gcmap.com/mapui?P=PIT-LHR-PIT&DU=km

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It's not really a fuel surcharge, given it exceeds the airlines total fuel cost per seat. They just fraudulently call it that.

 

You can work out BA's current fuel costs, from their 2012 financials, per seat-Km

 

Total BA Fuel, oil and emission costs: £3,712m

Total BA Available seat kilometres (ASK): 158,247m

3712m/158247m = £0.024 ASK

Distance PIT-LHR-PIT = 11,973km

 

hence, fuel cost for a return seat PIT-LHR-PIT per their financials

£287.35 = $439.24

This fare was on Delta, but your point is valid.
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Oh, please don't misunderstand. I'm NOT complaining about the fare, I was just curious as to what all these fees are and how they were divided. Sure looks like a lot of government hands into the wallet.

 

Thanks to those who took the time to research.

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At least you found out what all the "fees" were for. I was curious about "port taxes and fees" of over $300 on a cruise fare. I called our TA who suggested we call the line, as she did not know. I did. They WOULD NOT tell me what the break down of "port taxes and fees" was. IE: Who gets how much.

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This fare was on Delta, but your point is valid.

OK, Delta it is:

 

Fuel Cost per available seat mile: 4.96c (note it's down from 5.49 in 2012 Q2)

Distance PIT-LHT-PIT: 7440 miles

Cost for one seat worth of fuel: $369.02

Fuel 'surcharge': $458

 

I'm still baffled how charging $90 more that the total per-seat fuel cost to the airline can be a surcharge. Were the refineries paying the airlines to take fuel off their hands in the past?

 

Delta's 2013 Q2 financials: http://www.delta.com/content/dam/delta-www/pdfs/about-financial/JuneQuarterNonGAAPs.pdf

Distance: http://www.gcmap.com/mapui?P=PIT-LHR-PIT&DU=mi

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OK, Delta it is:

 

Fuel Cost per available seat mile: 4.96c (note it's down from 5.49 in 2012 Q2)

Distance PIT-LHT-PIT: 7440 miles

Cost for one seat worth of fuel: $369.02

Fuel 'surcharge': $458

 

I'm still baffled how charging $90 more that the total per-seat fuel cost to the airline can be a surcharge. Were the refineries paying the airlines to take fuel off their hands in the past?

 

Delta's 2013 Q2 financials: http://www.delta.com/content/dam/delta-www/pdfs/about-financial/JuneQuarterNonGAAPs.pdf

Distance: http://www.gcmap.com/mapui?P=PIT-LHR-PIT&DU=mi

 

Perhaps they are trying to recoup their losses on their own refining operations. You can read more at THIS LINK that discusses the DL refinery woes.

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