After the demise of the FAA bill extension, most of America’s airlines are keeping the money that they formerly collected as taxes. Almost in concert, the airlines have raised their airfares to match what ticket prices would have been with the 7.5 percent air transportation excise tax and are even taking advantage of the demise of the $3.70 domestic segment fees by raising airfares a further $4 per take-off and landing.

Now to the public the airfares and the post tax prices will seem identical to those in effect before Friday night at midnight, but around eight percent of the cost that once went into taxpayer coffers will now be skimmed off by many of the airlines rather than being returned to taxpaying passengers.

Keeping track through reviews of price changes yesterday published by the major airlines and after a series of furious emails back and forth with airline PR folk, it seemed that Delta was the largest airline that initially gave passengers a break. Their advanced-purchase shuttle prices between Boston and DCA dropped to $144 while USAirways kept their prices at $159 for the same route where they compete head to head. JetBlue prices seemed to straddle the fence with prices settling at $152 this morning.

American quickly settled in with USAirways who seemed the most upfront of the airlines in their desire to grab the tax payments and keep them in their balance sheets.

Southwest Airlines clearly decided that this was the time implement a fare increase and has raised prices a further $4 to compensate for the uncollected $3.70 domestic segment tax.

On the other side of the spectrum, Alaska Air announced a “tax savings” promotion as did Spirit Airlines. They are passing the tax savings back to the would-be taxpayers. Airfares on their airlines are dropping.

Here’s my scorecard as of Sunday morning July 24th.

Keeping the tax money
American Airlines
Delta Airlines (initially passes along the savings, but later followed other legacy carriers)
Southwest and AirTran
United Airlines
USAirways

Passing the tax savings to passengers
Alaska Airlines
Frontier
Spirit Airlines
Virgin America

Undetermined
Allegiant
JetBlue

Now, the big question. When the taxes come back, as we know they will, will the airlines raise their airfares again by the amount of the taxes? I’m betting they will. What do you think?

I actually, idealistically, thought the airlines might have returned the tax savings to their passengers, letting them know they were ultimately on their side and showing regulators a less-greedy, passenger-focused side. But, evidently such considerations were given short shrift.

Now consumers know clearly that no matter what protestations about being on the side of passengers may come from the airlines, they are horse hockey. And the DOT, in its reflections on airline price transparency during the upcoming proposed rulemaking, will take an unambiguous turn to stiffly regulating the airlines since airline actions have demonstrated they have no interest in their consumers.