GBTA to Congress: Don’t Increase the PFC

Alexandria, VA (December 14, 2017) – Today, the International Air Transport Association (IATA) released an economic briefing on the impact of raising the Passenger Facility Charge (PFC). 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 each year.

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.”

About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit www.gbta.org.