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Passenger Facility Charge (PFC)

Passenger Facility Charges (PFC)

Commercial airports controlled by public agencies began imposing passenger facility charges (PFCs) — collected via airline tickets — on June 1, 1992, at up to $3.00 per passenger enplanement ($12.00 per round trip). P.L. 106-181 (the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century) raised the cap to $4.50 ($18.00 per round trip) effective April 1, 2001. PFCs are federally authorized but levied by local airport operators, which set the amounts. PFCs can fund only federally approved capital-improvement projects “that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.”

The FAA monthly report Key Passenger Facility Charge Statistics summarizes the annual amounts remitted by the airlines (to the collecting airports), excluding compensation received for collecting, handling and remitting the charge (see 14 CFR Part 158.53). At the outset of the PFC program, airlines were entitled to compensation of 12 cents per PFC remitted. On June 28, 1994, the amount was reduced to 8 cents per PFC remitted. In a process that started in April 2000 and concluded in March 2004, the rate was increased to 11 cents per PFC collected.

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