Los Angeles International Airport (LAX) is set to vote on a proposal that could substantially increase fees for ride-hailing services, taxis, and limousines. The Los Angeles Board of Airport Commissioners will convene on March 10, 2024, to discuss the potential fee hike aimed at reducing congestion and promoting the use of the long-awaited, nearly $3.5 billion automated people mover, known as SkyLink, which is expected to open later this year.
Currently, passengers using these services pay between $4 and $5 in airport access fees, depending on drop-off or pick-up locations. The proposed changes would raise these fees to a base of $6 each way, regardless of whether travelers are coming from the remote LAX-it lot. This increase could take effect as early as April 2024. Once SkyLink becomes operational, fees could escalate to $12 for drop-offs and pick-ups at the Central Terminal Area (CTA), marking a 140% increase in total costs for round trips.
In comparison, curbside pick-up and drop-off fees at San Diego and San Francisco international airports range from $4.50 to $6. According to a report from Los Angeles World Airports (LAWA), the existing fees have remained unchanged for a decade and do not reflect the current value of the airport market. The report emphasizes that “the CTA has finite capacity,” and managing demand is vital for ensuring a positive experience for both travelers and employees.
LAWA estimates that the increased fees could generate as much as $100 million in the first year following the opening of SkyLink. The prospect of significantly higher fees has raised concerns among ride-hailing companies. Uber has indicated plans to inform its Los Angeles customers and drivers of the potential fee increases. The company’s communication urges customers to contact city and airport officials to express their opposition, stating that the proposed fees “would be the most expensive in the world.”
Danielle Lam, Uber’s head of local California policy, criticized the fee increase, arguing, “A 140% fee hike with no transparency or public process is indefensible.” She added that raising the rideshare fee from $5 to $12 would adversely affect travelers, working families, and seniors who rely on affordable transportation options.
The proposed fee increase is not the only measure under consideration. The Board is also contemplating regulations that would limit the number of passengers that taxis and ride-hailing services can pick up or drop off at the busiest terminals. According to the staff report, companies like Uber and Lyft account for nearly 30,000 daily trips to the CTA. LAWA aims to enforce a requirement that these companies pick up no more than 30% of their fares and drop off no more than 70% of their fares in the CTA, with remaining passengers directed to SkyLink stations.
The Los Angeles Board of Airport Commissioners meeting is scheduled for 10 a.m. on March 10, 2024, at the Clifton A. Moore Administration Building at LAX. As the vote approaches, the implications of these proposed fee increases and regulations are likely to reverberate across the transportation landscape in Los Angeles.
