What is a Passenger Facility Charge (PFC) and how is it used?

What is a Passenger Facility Charge (PFC) and how is it used?

• A. A federal tax collected on tickets for security upgrades.
• B. A local charge paid by airline passengers to fund approved airport capital projects.
• C. A state subsidy for airport operations.
• D. A grant from the FAA for daily operations.

Answer: (B)

A Passenger Facility Charge is a locally imposed fee collected from airline passengers to pay for airport capital improvements. Airports obtain FAA approval to levy the charge and use the funds only for eligible projects such as terminal expansions, runway or taxiway upgrades, baggage systems, security enhancements, or noise mitigation programs. The money is collected per departing passenger (often per flight segment) and must be spent on approved capital projects, not on daily operations or maintenance. This makes it a targeted funding tool that helps airports finance big infrastructure improvements without relying on general taxes or FAA grants for ongoing operating costs.

A Passenger Facility Charge is a locally imposed fee collected from airline passengers to pay for airport capital improvements. Airports obtain FAA approval to levy the charge and use the funds only for eligible projects such as terminal expansions, runway or taxiway upgrades, baggage systems, security enhancements, or noise mitigation programs. The money is collected per departing passenger (often per flight segment) and must be spent on approved capital projects, not on daily operations or maintenance. This makes it a targeted funding tool that helps airports finance big infrastructure improvements without relying on general taxes or FAA grants for ongoing operating costs.