Los Angeles International Airport (LAX) is poised to substantially increase fees for ride-hailing services, taxis, and limousines used to pick up or drop off passengers. The Los Angeles Board of Airport Commissioners is set to vote on this proposal during a special meeting on March 10, 2024. The goal is to alleviate congestion and encourage visitors to utilize the upcoming $3.5 billion automated people mover, named SkyLink, which is expected to open later this year.
Currently, fees for dropping off or picking up passengers range from $4 to $5 each way, depending on the location. Ride-hailing services incur fees both for pickup and drop-off, while taxis and limousines are only charged for pickups. Under the new proposal, the base fee for all services would increase to $6 each way starting in April. Once SkyLink becomes operational, fees could soar to $12 for curbside access at Terminals 1-8, known as the Central Terminal Area (CTA). For context, a passenger currently paying $10 in round-trip fees would see that amount rise to $24, representing a staggering 140% increase.
Comparatively, curbside fees at both San Diego and San Francisco international airports are between $4.50 and $6. According to a staff report from Los Angeles World Airports (LAWA), the current fee structure has not changed in a decade and no longer reflects the airport’s market value, especially considering the substantial investments in landside access, terminals, and other amenities.
The report emphasizes the need for demand management to ensure a positive experience for travelers and employees. “The CTA has finite capacity, so managing demand ensures a positive experience for both travelers and employees, helping LAWA and Los Angeles maximize the value of the multibillion-dollar SkyLink investment,” the report states. LAWA estimates that the higher fees could generate as much as $100 million in the first full year after SkyLink opens.
Ride-hailing companies have expressed strong opposition to the proposed fee increases. Uber plans to communicate with its customers and drivers to raise awareness before the board meeting, highlighting that these fees would make LAX’s rates “the most expensive in the world.” In an email to users, Uber clarified that the increased fees are paid by riders and go directly to the airport, not to the drivers or the company.
“A 140% fee hike with no transparency or public process is indefensible,” stated Danielle Lam, Uber’s head of local California policy. “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. Uber supports improving LAX, but not on the backs of the people who keep it running.”
In addition to the fee hike, the board will also consider limiting the number of passengers that taxi and ride-hailing companies can pick up or drop off at the busiest terminals. The staff report indicates that companies like Uber and Lyft account for nearly 30,000 daily trips to the CTA. Under the proposed regulations, LAWA would require these companies to pick up no more than 30% and drop off no more than 70% of their fares within the CTA, directing other passengers to utilize a SkyLink station instead.
The Los Angeles Board of Airport Commissioners’ meeting is scheduled for 10 a.m. on March 10 at the Clifton A. Moore Administration Building at LAX. As the airport navigates these potential changes, the implications for both passengers and service providers remain to be fully understood.
