What Is Tax Deductible in the Airline Industry?

Chicken or Beef?

• Although airlines are continuously scaling back on the complimentary food and beverages they provide to you during your flight, those that still provide these amenities can deduct the cost of loading up the airplane with meals, sodas and snacks. That expense can sometimes include more charges than you might think. Not only do airlines purchase those items to serve during the flight, but they also usually hire an outside service provider to load them onto the plane.
  
  

Jet Fuel

• Over the last few years, the price of jet fuel has risen sharply, causing many airlines to include a fuel surcharge in ticket prices. Regardless of whether the airline charges an extra fee or not, the cost of purchasing the fuel is fully deductible to the airline. But keep in mind that when it charges additional fees, that revenue also increases its taxable income.
  
  

Salaries

• Although every business is likely to have employees, the airline industry is extremely labor intensive. As a passenger, you may not realize how many people besides the pilot and flight attendants are necessary to make sure your flight takes off on time. There are the employees who check in your luggage, those who then separate the luggage by flight, and the baggage handlers who finally load them into the belly of the plane. And then, of course, you get to the gate and want to change your seat, so there are gate agents who are involved in that process as well. All of these employees are integral to the flight process and must be paid. Luckily, as long as their salaries are not excessive, the airline can fully deduct them.
  
  

Cabin Crew

• If you work as a pilot or flight attendant, your work schedule is irregular and probably requires you to spend many nights away from home. For this reason, there are more deductions that you can claim than the average employee can. When you land at your destination, you may need transportation to your hotel. The cost of traveling back and forth to the airport from your hotel is deductible. And while at the hotel, you have no choice but to purchase your food. Although you can deduct your meals, the IRS only allows you to deduct 50 percent of those costs. However, to claim either of these deductions, you must satisfy two requirements: the airline must not reimburse you for these costs and you must be eligible to itemize. These deductions are included in your miscellaneous expenses on your itemized deductions, the total of which are only deductible on the portion that exceeds 2 percent of your adjusted gross income.