Airline Taxes and Fees

Understand airline ticket taxes, government charges, airport fees, and MikoFlight service fees.

Common air charges that have a relationship to the United States can be accessed via the official air charge anchors. A marking scheme has been provided as well as an air charge fee schedule for MikoFlight.

Passenger ticket taxes, fees and charges is a complex and dynamic topic on which governments impose taxes on airlines and pass them back to them, and IATA provides best practice guidance to help governments settle the taxes quickly and correctly, IATA explains. Air charges that have an association with the country currently stand at: currently 7.5 per cent export fee for air transport; currently USD 5.30 export fee for the domestic transport section (with rate caps); currently USD 23.40 export fee for the international facilities section (with rate caps); security fees for September 11, charged by the TSA, and USD 4.50 export fee on the domestic transport section. Additional agency service-fees tabular listings are provided in the model below, as are repeats of the disclaimers that no proportion of fees is refundable, and that service-fees may be changed by the government in many cases.

MikoFlight Inc is neither an airline nor an independent tour operator or travel agent and operates MikoFlight. This page will show you the difference between the taxes and charges levied by the government and airport authority, and those charged directly by MikoFlight Inc. It has been designed not to replicate all the fare rules or all the tax codes in the world! There is no fixed price for the tax on airline tickets, rather it is determined by itineraries. At the end of the day, the monies to be paid will determine, but this page can give you an idea.

If the Customer uses MikoFlight for Air Travel, then the cost that appears prior to payment could include many elements in the cost. One is the cost of operating an airline (its ‘Transportation Cost'). The next layer could be airlines' surcharges, and/or carrier's charges. There might also be another layer, that of taxes, passenger duties, airport charges, inspection fees, security charges or other taxes demanded by the state, collected via the airline-distribution network. If this applies, another fee may be a transaction fee which may be charged to MikoFlight Inc via the booking above. Additional options are optional, but if there are additional services, they can be prebooked or the option can be offered to the customer on top of it all, e.g. insurance option, upgrading customer to specific seats etc. as appropriate.

Generally, they are levied based on the airports, security taxation agencies, pricing and settlement methods of the aviation companies and transferred to the systems established by the aviation companies that levy them. They are imposed by the relevant country, the airport, the governmental security agency or the tax authority, and collected at the airport in the pricing and settlement systems of the aviation companies who impose them. Governments and authorities charge many large volumes of ticket taxes, fees and charges, and require standardized collection of these taxes to ensure accurate collection and settlement, IATA points out. The tax price as a General example may be subject to changes depending on route, origin, end destination, connection point, point of sale, cabin and date and MikoFlight can NOT guarantee that the price of the tax will be the same on all examples.

When looking at typical domestic travel itineraries (within the U.S.), the excise tax on domestic air transportation, the domestic-segment charge, the international facilities tax, the TSA September 11 Security Fee and the FAA Passenger Facility Charge are all visible, official charges. There is an excise tax of 7.5% on the taxable amount on the domestic fare and there is an excise tax of $5.30 per domestic segment. When flying internationally through air travel into the U.S. or leaving from the same, a facility charge of $23.40 per individual is levied. The maximum amount for passenger facility charge is $18.00 for one round trip, for transaction charges, it is $4.50 per eligible segment. Inspection and/or user fees may also be imported with some overseas arrivals.

The agency service fee paid by the travel dealer for the agency service provided is not a tax, airport fee or airline penalty, but forms part of the online transaction fee charged by the government for MikoFlight online transaction services. MikoFlight fee, therefore, needs to be made as clear as can be in simple terms, and never added to an inappropriate tax designator including government tax.

MikoFlight can be used in online and assisted travel desk self-service (when necessary) Therefore, Agency Fees rates can vary according to the channel. When booking without any human contact, a customer may be charged less or even no MikoFlight cost as a customer who requests any booking but via telephone, or manual, might be charged more for the same booking, due to the specialized nature of many trips involving a multi-city booking, or after hours. Such a difference must be communicated prior to payment and, if the Post-Ticketing Service Fees page displays this information, should match the difference as well.

Tax codes may be referred to in other industry tax codes, or on ticket or checkout screens. These code(s) are code(s) may be dependent on an itinerary. Several are set. Then there are those that are country/airport specific or carrier transmitted. The customer must use the single Table to give a general explanation of the itinerary tax/price, but should refer to the final checkout page, ticket receipt or invoice to explain to the customer the specific tax/price of the itinerary where necessary.

It collects and receives taxes and fees only as part of paying the taxes and fees as a travel transaction agent and as part of settlement of the travel transaction by the customer. If the applicable distribution method is one of the airlines' distribution methods (such as an airline merchant-card acceptance), then the tax and the amount of the fare might be determined in accordance with industry rules. If not listed under the "free" amount, then it will be the MikoFlight fee, if applicable. This is critical for cancellation, refund and dispute requirements must be taken into account.

Depending on the law or authority the imposed tax or charge, the “rules of the ticketing and remittance” of the airline, the construction of the fare, whether the travel was actually made and whether the airline or intermediary would have been entitled to the imposition of the tax or charge, some tax or charge may be refundable, partly refundable or non-refundable. Whenever they deem a case difficult, some OTAs publicly state that customers should therefore contact the airline if they need to confirm if taxes are refundable or not. A good general guideline to follow is when the trip is a so-called 'edge case.

MikoFlight transaction-fee schedule

MikoFlight fee category Initial amount
Online air booking fee USD 0.00 - USD 60.00 per passenger, per ticket
Additional charge for premium cabin or high touch air booking via online. This is a one person max rate of USD 120.00 per person.
Assisted standard booking fee USD 15.00 - USD 150.00 per person/ticket
Booking fee for assisted complex booking/multi-city/manual air itinerary Up to USD 250.00 per person.
Signature Surf Search Variation Fee (For Alternate Dates/Nearby Airport on request) A max of $50 per person is inclusive.
Part of the group or non-standard research fee. As quoted prior to payment

Pro-Typical tax and fee table

Component Typical basis That was an official/public anchor
US excise tax Taxis on domestic amounts. 7.5%
US domestic segment tax Charge for domestic taxable segments USD 5.30 per segment
US international facilities tax Revenue charges to international passengers for qualification over and above fares. USD 23.40 per passenger
TSA September 11 charge Fee for one-way travel TSA security fee
Anyone who chooses to enjoy this segment will incur charges based on that segment; route limit applies Up to USD 4.50 per eligible segment and per route cap applies. Itineraries have a maximum allowed price of USD 18.
Use route and airline specific terminology. Sample from OTA's. Spectrum; typically OTAs list examples.
MikoFlight service charge Travel agency specific As stated before payment was to be made.

Legal clause

Whether the government imposes taxes, passenger duties, airport taxes, etc. for riding in MikoFlight Inc planes is not something that the company has any control over, and it could be changed before tickets are issued, and before a flight occurs. Any travel costs quoted (applicable) are agency fees and not government taxes or airline specific penalties.