Where do air taxes go?

QUESTION: Will you please tell me and thousands of other air travellers, where the air taxes go to? I have noticed that in some cases, they are more than 50% on top of the flight costs. - Larry Edmonds

ANSWER: You are quite correct that additional taxes do form a major part of the cost of airline tickets these days. The biggest cost is airport taxes, which go to the airport management. Then there is the government tax charge (usually VAT these days), which goes to the government of the country where the ticket was bought. Other charges include insurance surcharges and fuel surcharges, which go to the airlines. Some airlines (especially budget carriers) also levy an administration fee or booking fee, which is also added on to the cost of the ticket. On top of that, the travel agent or airline booking office sometimes charges a fee. All these costs certainly add up. The final cost can vary from day to day, as some fees are charged in US dollars or Euros and depend on the currency exchange rates.