More airlines stop collecting excise tax

January 02, 1996|By LOS ANGELES TIMES

Would-be travelers received a New Year's bonus yesterday when several more airlines stopped collecting a federal excise tax, slashing the cost of domestic air tickets by 10 percent at a time when some prices were already lower because of a winter fare war.

But travel industry officials urged people to move quickly to take advantage of the savings, since Congress is expected to reinstate the tax, which expired on New Year's Eve. The tax, along with a $6 fee on international departures and a 6.25 percent on air freight, is a victim of the federal budget deadlock. American Airlines, Northwest Airlines, Delta Air Lines, Continental Airlines and USAir were among those who stopped collecting the tax.

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