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Airlines pocket tax revenue during FAA shutdown

In this photo taken June 17, 2011, shows stranded United Airlines passenger Therell Churchill waiting at the United Airlines ticket counter at Denver International Airport Friday, June 17, 2011, in Denver. It could take several days for thousands of stranded travelers to get home after a United Airlines computer system shut down for several hours, leading to widespread cancellations Friday night. The unspecified "network connectivity" problem was fixed and flights resumed early Saturday, but the airline said delays could persist throughout the weekend. (AP Photo/Rick Bowmer)

There’s a tax holiday right now on airline tickets. Who gets the benefit, airlines or the passengers? With only a few notable exceptions, airlines are pocketing the temporary windfall instead of passing the savings on to the people who actually pay the taxes.

A dysfunctional Congress let funding expire for Federal Aviation Administration on Friday, forcing the agency to lay off thousands of employees and shut down airport construction projects. Air traffic controllers are still on the job -– they are classified as essential and still get paid.

Full Story: Airlines pocket ticket-tax holiday

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