The major airlines have decided to absorb much of the 10 percent tax that the government reimposed on domestic air fares last Friday, passing along only a 4 percent increase to travelers.
The decision marked a quick change of heart by many airlines. Most of the major airlines at first added the full 10 percent tax when it was restored by Congress. That immediately raised prices.
Northwest, however, didn't at first add on the tax, and in an industry as competitive as airlines, that forced the others to roll back the taxes, too.
Later Friday, Northwest took the cautious move of passing along only 4 percent of the tax and absorbing the rest. The other airlines followed suit, although some of the new pricing didn't show up in travel agent computers until Saturday.
As of today, most of the airlines were still charging only 4 percent, on most routes.
For those travelers who paid the 10 percent tax on Friday, the airline should be able to arrange a refund, said an American Airlines spokesman.
Congress voted earlier this month to reinstate a package of ticket taxes that expired Dec. 31 because of the budget battle with the White House. It went back into effect at 12:01 a.m. Friday.
The taxes also include a $6-per-ticket tax on international departures and a 6.25 percent tax on domestic air cargo. They are expected to raise $2.7 billion through 1998 to improve airport safety.
When the taxes expired in January 1996, airlines passed the savings on to customers for several months before slowly raising fares.