Understanding Air Taxes and Surcharges
Source: National Association of Travel Agents Singapore, NATAS

Have you ever wondered why you end up paying more for your air ticket than the advertised rate?

The reason is that fare quotes and advertised rates for air tickets do not usually include:

• airport taxes
• baggage taxes
• fuel surcharge
• navigation taxes
• noise taxes
• security taxes
• war risk insurance taxes etc

The cost of air travel includes some or all of these taxes and surcharges, which are imposed by the relevant agencies and airlines, depending on your choice of destination and carrier.

Travel agents are tasked to collect these taxes and surcharges on behalf of the various airlines,which will in turn settle any taxes with the various related agencies.

Travel agents, therefore, have no control over taxes and surcharges.

Furthermore, these added costs are subject to change. Most of these taxes and surcharges are quoted in foreign currencies and are therefore subject to currency-exchange fluctuations.

Taxes and surcharges are also affected by any policy changes mae by government agencies and airlines. For example, several airlines have increased their feul surcharges recently, following the surge in oil prices.

With so many variables, the final ticket price - inclusive of any taxes and surcharges to be paid - can only be finalised on the actual day a ticket is issued, after which any changes in taxes will not affect the passenger.