Winners & Losers: Air Travel Edition

August 8, 2011— -- The big winners in air travel in the past few weeks? No question: the airlines. They pocketed hundreds of millions of dollars that could have gone into passenger pockets by raising base airfares during the congressional impasse-induced tax holiday -- a tax holiday you and I didn't get to enjoy.

Now that the taxes have returned after a 16-day hiatus, the airlines are rolling back their increases. After all, we're heading into the "soft" fall travel season, and if they didn't lower their prices, people might not fly. For the airlines, a win-win.

They weren't alone in being air travel winners. In fact, I'd like to award Britain's Prince Harry, plus Will and Kate, a special Throne of Frugality for their recent flights on low cost airlines. And yes, they stood in line for security screening just like the rest of us peasants.

OK, time for my official "winners and losers in the air travel industry" list, mid-year edition:

For more travelnews and insights view Rick's blog at farecompare.com

Round 1: The Airline Ticket "Tax Holiday"

Winners: As previously noted, most of the airlines. When congressional inaction stalled re-authorization of the FAA, allowing many airline ticket taxes to expire, the carriers didn't pass the savings on to you; instead they raised their prices and made some loot. Since then, the airlines have rolled back prices, but of course, the taxes have returned.

Losers: Passengers, of course, and those 4,000 FAA employees who were thrown out of work during the impasse (ditto for some 70,000 construction workers).

Special Mention: Alaska Airlines did not follow the herd to cash-in on the tax grab, but came out a winner anyway. Its principled stance (or was it PR savvy?) won new customers. According to Alaska's Bobbie Egan, "In the first seven days after the taxes expired, new bookings increased 26 percent". Well played, Alaska.