What is a PFC tax and why does it vary?

Airports are increasingly funding more infrastructure, including those traditionally funded by airlines and the federal government, such as baggage systems, gates, expansion of security checkpoints and international arrival facilities. Much of this funding comes from local airport user fees known as Passenger Facility Charges (PFCs). First introduced in 1990 as a fee to “support FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition”, PFCs have now amounted to more than $50 billion in airport capital investments. Tied directly to local airport-related projects, PFCs cannot be used for revenue-producing projects such as parking garages or terminal concession areas. The amount of the PFC varies by location, with a maximum of $4.50 per passenger boarded at commercial airports. Thus, a roundtrip from Dulles to Los Angeles on direct flights will have a PFC of $9 – $4.50 each for boarding a flight at Dulles and at Los Angeles. Flying Dulles to Los Angeles with connections in Chicago both directions will result in a total PFC of $18 – $4.50 each time you board the four flights.