What is a Passenger Facility Charge (PFC) and how does it relate to project funding?

• A. A federally authorized user fee used to fund eligible capital projects at the airport.
• B. A grant from FAA.
• C. A tax on airline tickets for security.
• D. An insurance assessment.

Answer: (A)

A Passenger Facility Charge is a federally approved user fee charged to air travelers to help fund eligible capital projects at an airport. The revenue collected by airlines on behalf of the airport is restricted to financing capital improvements (such as runways, terminals, baggage systems, and security upgrades) or to service debt on those projects, with FAA oversight. It isn’t a grant from the FAA, it isn’t a general tax on tickets for security, and it isn’t an insurance assessment. This funding mechanism lets airports advance major projects without relying solely on grants or operating revenue.