Do non-revenue flight tickets incur tax liabilities on the individual who obtained or used the ticket in the United States?

Question

Airline employees often have access to so-called non-revenue flight tickets, for themselves or their surroundings. Do non-revenue flight tickets incur tax liabilities on the individual who obtained or used the ticket in the United States? In other words, is it a taxable benefit?

Answer 1

It depends.

If they book the ticket for free as a benefit to them being airline employees then it is taxed as a fringe benefit based on the value of the ticket.

If they hitch a ride on a flight on a stand-by basis if there's extra space available (i.e.: no guarantees that they'll fly and they only take an empty seat and not a seat reserved specifically for them) then there's no income tax liability.

See 26 CFR 1.132-2.