MIRAMAR, Fla., July 23, 2011 (GLOBE NEWSWIRE) -- Spirit Airlines (Nasdaq:SAVE) is all about saving customers money and today is no different. Yesterday, Congress adjourned failing to reauthorize the FAA's funding. As a result, some federal taxes, including the 7.5% U.S. federal excise tax on domestic travel, a $3.70 domestic segment tax, and a $16.30 international arrival/departure tax are no longer valid and cannot be collected by airlines. Effective immediately, Spirit is passing along all of these tax rollback savings to its customers. Some carriers have not been so generous and have pocketed the difference in taxes in the form of higher fares.
What many do not realize is that the 7.5% federal excise tax was previously included in the fare. For example, if your ticket was $100 last Friday, it included 7.5% federal excise tax of $7.50 plus a $3.70 domestic segment tax for a total of $103.70. Today, the new fare without the 7.5% tax and $3.70 tax should be $92.50.
As always, Spirit continues to look out for its customers by lowering all domestic non-stop fares by 7.5% and passing along the other tax savings which can add up to over $50 round-trip per customer. Meanwhile, it appears that some other airlines aren't so generous. Some are maintaining the previous pricing levels and continuing to charge customers the full $103.70 used in the earlier example and have chosen to pocket their share of the estimated $200 million per week difference and actually in effect raised fares today following the government's deadline to cease collection of the taxes.
Spirit has become a model for transparency, ensuring customers are not impacted by hidden fees as practiced by other airlines and the government. Spirit would never for example hide a bag fee inside a higher fare like some other airlines that have the audacity to claim that "bags are free." And before today, many did not realize that the 7.5% federal excise tax fee was hidden inside the domestic airfare.
Spirit is encouraging consumers to contact their representatives in Congress to ask that they reauthorize the FAA so the thousands of employees that have been furloughed can get back to work. In addition, in the spirit of transparency, Spirit is encouraging consumers to demand that if or when these taxes are reinstated that they be broken out and not be hidden inside the fare as practiced in the past.
Congress could reverse this tax holiday at any time, so Spirit encourages customers to take advantage of these tax savings while they are available now.
Customers may be entitled to a refund on taxes for tickets purchased before today for travel after today. Consumers should contact the IRS directly for details.
About Spirit Airlines
Spirit Airlines (Nasdaq:SAVE) empowers customers to save money on air travel by offering ultra low base fares with a range of optional services for a fee, allowing customers the freedom to choose only the extras they value. This innovative approach grows the traveling market and stimulates new economic activity while creating new jobs. Spirit's modern fleet, configuration and other innovations enable Spirit to burn less fuel per seat than competitors, making Spirit the most environmentally-friendly carrier. Spirit's all-Airbus fleet currently operates more than 175 daily flights to over 45 destinations throughout the U.S., Latin America and Caribbean. Visit Spirit at www.spirit.com.
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