Air Fares Hit Turbulence With Ticket Tax Return

As the federal 10% tax on airline tickets was reimposed Friday, airlines were adjusting fares frequently, and it was unclear whether travelers would have to pay more to fly.

Airline spokesmen said that fares were in constant flux and that it would probably be early next week before they stabilized.

Several major airlines, including American and United, at first added the tax onto current fares, raising ticket prices 10%. However, Southwest Airlines announced it would lower base fares enough to absorb the tax without raising prices.

Other airlines also wavered, and prices were adjusted several times during the day. The only thing that seemed clear by late Friday was that there would not be a full 10% increase in what passengers pay, and possibly no increase at all.

The tax expired on Dec. 31 partly because Congress has not yet agreed on a new method of financing the Federal Aviation Administration. That debate will resume this year, but in the meantime, the lawmakers decided to extend the tax again through September.

When the tax expired, airlines generally did not pass the saving to customers. That alone increased pressure to hold the line Friday on the final cost to the customer.

“John Q. Consumer better sit around and wait until the dust settles, probably by Monday morning,” said Tom Parsons, editor of Best Fares magazine.

Airline executives cautioned against quoting specific fares because they were changing hour by hour.

“Over the weekend, the pricing people are going to go nuts,” said Tony Molinaro, a spokesman for United.