John,
Thanksgiving travelers are stuck in crowded terminals and long lines while airlines celebrate the savings they pocketed from Trump’s corporate tax law. Our new analysis shows the five biggest airlines paid only a 7.5% federal income tax rate on $6.4 billion in profits over seven years―little more than half what the average American household pays.[1] Meanwhile, we’re paying higher fees while receiving worse service.
Families paid rising prices for checked bags, seat assignments, and basic travel needs. Airlines did not lower ticket prices. They did not improve customer service. They did not hire more staff. They simply squeezed travelers to boost payouts to executives and shareholders.
Wealthy airline shareholders collected $4.8 billion in dividend payouts and more than $15 billion in stock buybacks, all while customer complaints hit record highs for delays, cancellations, tarmac failures, lost luggage, and overcrowded flights that make the holidays miserable for millions.
Trump’s tax law cut the corporate tax rate and opened loopholes that let airlines avoid paying what they owe. Delta, Southwest, and United together paid only 4% on their profits. Many teachers, nurses, service workers, and veterans pay more than that in federal taxes. Airlines got richer by exploiting the tax code while simultaneously making air travel more expensive. We need your help to expose and stop the airline tax dodge.
Please make a contribution right now to hold airlines accountable and demand a tax system that puts taxpayers first, not wealthy shareholders and CEOs. Instead of tax loopholes, we’re demanding major airlines pay their fair share in taxes and invest in travelers’ needs, not shareholder giveaways.
Airline employees did not share in the benefits. Top executives received 260 times more in compensation than median-paid workers. If airlines had used the money they spent on buybacks to raise wages, the average worker would have received an extra $47,000. Instead, those funds were funneled upward to wealthy investors who never wait in security lines or fight over shrinking overhead space.
Airlines used shell companies, tax tricks, and accounting games to drive down their tax obligations while passengers faced record inconvenience. Trump’s rollback of critical consumer protection rules made it easier for airlines to delay, cancel, and strand customers without paying compensation for the disruptions they caused. They worked hand in hand with the administration to bury regulations that would have required up to $775 in compensation for flight delays.
This system is not simply broken. It is rigged. Trump built a tax code that rewards corporate greed and punishes working Americans. Airlines are the proof. They got the windfall. We got the bill.
This is the moment to demand change, and we need your help to win this fight. Donate now and help us hold airline tax dodgers accountable.
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Let’s make the airlines pay their fair share.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1]
This Thanksgiving, Airline Passengers and Workers Are Worse Off As Companies Dodge Taxes to Make Their Top Execs and Shareholders Richer.