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Passenger Facility Charges (PFC)

August 5, 2014 Association No Comments Email Email

​Commercial airports controlled by public agencies began imposing passenger facility charges (PFCs) — collected via airline tickets — on June 1, 1992, at up to $3.00 per passenger enplanement ($12.00 per round trip). P.L. 106-181 (the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century) raised the cap to $4.50 ($18.00 per round trip) effective April 1, 2001.

PFCs are federally authorized but levied by local airport operators, which set the amounts. PFCs can fund only federally approved capital-improvement projects “that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.”

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As of August 1, 2014, 390 locations (including 351 at $4.50) were approved to collect PFCs, including 98 of the top 100 airports. [Note: Only five applications have ever been disapproved: APF, AUS, MCO, PIA and UST.] Of those approved, 359 were collecting.

The FAA monthly report Key Passenger Facility Charge Statistics summarizes the annual amounts remitted by the airlines (to the collecting airports), excluding compensation received for collecting, handling and remitting the charge (see 14 CFR Part 158.53). At the outset of the PFC program, airlines were entitled to compensation of 12 cents per PFC remitted. On June 28, 1994, the amount was reduced to 8 cents per PFC remitted. In a process that started in April 2000 and concluded in March 2004, the rate was increased to 11 cents per PFC collected.

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