Base fare

BF

Air fare without any taxes applied

Federal ticket tax

FTT

U.S. value added tax (currently 7.5% of base fare), used to fund FAA operations and the Airport Improvement Program

Federal segment tax

FST

U.S. tax applied per segment (currently $3.80), used to fund FAA operations and the Airport Improvement Program

Passenger facility charge

PFC

U.S. "head tax" collected and used by specific airports (currently capped at a maximum of $4.50), used for airport improvement projects

Federal security service fee

FSSF

U.S. security tax (currently $2.50), used for passenger and baggage screening

Total taxes and fees

TTF

U.S.: The sum of FTT, FST, PFC, and FSSF

EU: The sum of all applicable national ticket taxes

Total fare

BF+TTF

The sum of the base fare and the total taxes and fees; this is what the passenger actually pays, less any applicable travel agent service fee

Effective tax rate

ETR

Total taxes and fees expressed as a percentage of base fare (= TTF / BF x 100%)

Notes:

• Rates effective January 1, 2012

• For domestic travel only: different taxes apply for travel outside the U.S.

• Special tax rules exist for Alaska, Hawaii, and rural airports in the U.S.

• The passenger facility charge and security fee are collected each time a passenger boards an airplane, except that no more than two collections are made for each direction of travel. There is no such limit on the collection of the segment tax, which is collected for each segment in an itinerary.