To keep airfares down as fuel costs rise, airlines charge fees - some of which are federal-tax exempt - for reservation changes, seating, early boarding, meals, entertainment and baggage. Untaxed baggage fees in particular have generated $12.8 billion for airlines since 2007. If taxable, the revenue would help federally fund the air transportation system. Read related article.

Sources: Bureau of Transportation Statistics, U.S. Government Accountability Office | The Washington Post October 19, 2012
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