Los Angeles International Airport (LAX) is set to propose significant fee increases for ride-hailing services, taxis, and limousines. During a special meeting on March 10, 2024, the Los Angeles Board of Airport Commissioners will discuss a plan that could nearly double the current charges for these services. The aim is to address congestion and encourage the use of the anticipated $3.5 billion automated people mover, named SkyLink, which is expected to open later this year.
Currently, passengers are charged a base fee of $4 or $5 for pickups and drop-offs, depending on their location within the airport. Ride-hailing services, such as Uber and Lyft, incur fees for both pickup and drop-off, while traditional taxis only pay for pickups. Under the proposed changes, the fee for all services would start at $6 each way, effective as soon as April. Once SkyLink becomes operational, fees could rise to $12 for curb access at Terminals 1-8, known as the Central Terminal Area (CTA). This would mean an increase from the current round trip fee of $10 to $24, a staggering 140% hike.
The Los Angeles World Airports (LAWA) has not raised these fees in a decade, and officials argue that the current rates no longer reflect the airport’s value or the investments made in infrastructure and services. According to a LAWA staff report, “The CTA has finite capacity, so managing demand ensures a positive experience for both travelers and employees.” The report suggests that the increased fees could generate as much as $100 million in the first year after SkyLink opens.
The response from affected companies has been critical. Uber has indicated plans to alert its customers and drivers about the potential fee increases, labeling them as the most expensive in the world. In an email, Uber stated that these fees, which are ultimately passed on to riders, “go directly to the airport,” not to the drivers or the company itself. Danielle Lam, Uber’s head of local California policy, expressed strong opposition, stating, “A 140% fee hike with no transparency or public process is indefensible. Raising the LAX rideshare fee from $5 to $12 at the curb would punish travelers, working families, and seniors who depend on affordable, reliable transportation.”
In addition to the fee increases, the Board is also expected to consider a proposal that would limit the number of pickups and drop-offs allowed at the busiest terminals. The staff report indicates that companies like Uber and Lyft are responsible for nearly 30,000 daily trips to the CTA. Under the new regulations, these companies would be required to limit pickups to no more than 30% and drop-offs to 70% of their fares within the CTA, directing the rest to a SkyLink station.
The Board meeting is scheduled for 10 a.m. on March 10 at the Clifton A. Moore Administration Building at LAX. As discussions unfold, the proposals are likely to have significant implications for both airport operations and the commuting experience of travelers.
