White House Discussing Allowing Airlines to Keep Ticket Tax

  • Option would help cash-strapped carriers during virus scare
  • Idea would let airlines keep passenger ticket tax, fee
Photographer: Patrick T. Fallon/Bloomberg
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White House officials are discussing temporarily allowing cash-strapped airlines to keep some taxes and fees they collect from passengers as a way to help as travel plummets due to the spread of coronavirus.

The option is being discussed for the 7.5% tax on airline tickets, which provides a substantial part of the $16 billion a year collected for a trust fund used to help pay for the U.S. aviation system, according to three people familiar with the issue who asked not to be named.