VETT Act

The Border Airport Fairness Act of 2025, S.677, requires the President to designate primary airports within 30 miles of the northern or southern international land border as ports of entry. Crucially, it terminates the user fee requirement for customs services at these newly designated ports. This is happening now because the bill has been introduced and referred to the Committee on Finance, indicating a legislative push to streamline border crossings and reduce costs for air travel. The money trail for this bill is direct: it eliminates a cost for airlines and passengers. The user fees, which are currently paid for customs services, will no longer be collected at these specific airports. This translates directly into cost savings for airlines operating international flights from these locations, as well as for passengers who previously bore these fees. The increased ease of international travel to and from these border airports will also drive higher passenger volumes, benefiting airlines and associated travel services. Companies like American Airlines ($AAL), Delta Air Lines ($DAL), United Airlines ($UAL), Southwest Airlines ($LUV), Spirit Airlines, Alaska Air Group ($ALK), Hawaiian Holdings, SkyWest ($SKYW), Mesa Air Group, and Air Transport Services Group will see direct operational cost reductions and potential revenue increases from expanded international routes. Travel-related companies such as rental car agencies like Avis Budget Group ($CAR) and Hertz Global Holdings ($HTZ), and online travel agencies like Expedia Group ($EXPE), Booking Holdings ($BKNG), and Tripadvisor ($TRIP) will also benefit from increased cross-border travel. Historically, similar legislative actions that reduce operational costs or streamline travel processes have positively impacted the airline industry. For example, following the passage of the Air Transportation Safety and System Stabilization Act in September 2001, which provided financial relief to airlines, the sector saw a stabilization and eventual recovery in stock prices, though that was in response to a crisis. More directly, any reduction in fees or taxes for airlines has historically translated into improved margins or competitive pricing, leading to increased demand. While a direct historical precedent for eliminating specific customs user fees at border airports is not readily available, the principle of reduced operational burden leading to improved financial performance for airlines is well-established. Specific winners include all airlines operating or planning to operate international flights from primary airports within 30 miles of the U.S. land borders, such as American Airlines ($AAL), Delta Air Lines ($DAL), and United Airlines ($UAL), which have significant international operations. Regional carriers like SkyWest ($SKYW) and Mesa Air Group could also benefit if they serve these airports. Real estate companies owning or managing these specific airports could see increased traffic and associated revenue from concessions and landing fees. Losers are not directly apparent, as this bill primarily reallocates existing fee structures and enhances economic activity rather than imposing new burdens. This bill has been read twice and referred to the Committee on Finance. The next step is for the Committee on Finance to consider the bill. If it passes out of committee, it will then be eligible for a vote in the full Senate. If passed by the Senate, it moves to the House of Representatives for consideration. The timeline for passage is uncertain but the bipartisan sponsorship (Cruz, Gillibrand, Cornyn, Schumer) suggests a higher likelihood of progression.