Spirit Airlines proves lower taxes create jobs

4th Aug 2011
Spirit Airlines proves lower taxes create jobs

Following the elimination of several taxes on airline tickets on July 23rd, Spirit’s customers began saving up to $50 roundtrip. As a result, the volume of tickets sold jumped over 22 percent week over week in the first three days.

The Fort Lauderdale Convention and Visitors Bureau found that one full-time job is created for every 90 additional visitors to the area. An increase in Spirit’s load factor of just two points, easily achieved by the tax break stimulation listed above, would result in 1,000 new jobs if this tax holiday lasted a year, and Spirit carries only about 1% of the nation’s air travelers. Do the math.

Nationally, the airline industry is a catalyst for economic activity. Each airline traveler spends money far beyond the cost of the airline ticket, and millions of jobs are supported by airline travelers. Suppressing air travel through higher taxes has direct and far-reaching negative implications for the nation’s economic health and the unemployment rate.

Everyone recognizes the nation’s air traffic infrastructure needs to be well maintained. However, Spirit is aware that some policy makers are considering increasing the Federal Excise tax on air travelers and airlines and doubling several other governmental fees. Another proposal under consideration would add a new $35 takeoff tax to every ticket.

Spirit calls on airline customers, governmental leaders, policy makers, taxi drivers, hotel operators, cruise line personnel, restaurant employees, travel agents, tour operators, and others who would be directly harmed by an increased tax burden on travelers to join us in our efforts to keep airline user taxes low.


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