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GBTA to Congress: Don’t Increase the PFC

December 19, 2017 Business News No Comments Email Email

Today, the International Air Transport Association (IATA) released an economic briefingon the impact of raising the Passenger Facility Charge (PFC). http://www.granmonte.com/According to IATA, a $4 per segment increase to the PFC would increase the cost of travel to, from and within the United States by 1.9 percent for domestic travelers and 0.6 percent for international travelers. This could drive a decrease in travel of 8 million domestic passengers and 1 million international travelers

A PFC increase limits the return on investment on business travel – a proven economic driver contributing to GDP, jobs and wages. GBTA research shows that for every 1 percent change in business travel spending, the U.S. economy gains or loses 74,000 jobs, $5.5 billion in GDP, $3.3 billion in wages and $1.3 billion in taxes. Conversely, taxes and fees associated with travel have the opposite effect.

“The IATA study confirms that any PFC increase will have a negative economic impact,” said Michael W. McCormick, GBTA executive director and COO. “This is especially true for the business traveler as the PFC is essentially a tax on the cost of doing business. Money spent on taxes and fees is money that is not spent supporting economic growth and job creation. Congress should reject any PFC increase.”

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