Airlines rake in £265,000 a day from debit and credit card fees
Budget airlines are cashing in on £265,000 a day via debit and credit card charges for various purchases.
Changes in the law will soon make it illegal for airlines to charge such high booking fees. However, many are still enjoying profits from this additional charge.
Ryanair has been named and shamed as one of the worst offenders. It charges a massive £48 in return fees for a family of four making a booking using credit and debt cards.
Other low budget carriers charge passengers for each leg of the journey, despite both the outgoing and inbound flights being booked in the same transaction.
Consumer watchdogs have been campaigning to stop airlines from pocketing so much money in high fees. Last year they submitted a ‘super complaint’ to the government and leading financial bodies.
Last June, the government announced that it would take measures to outlaw the extortionate fees and charges. Despite steps being taken to address the issue, the law is set to change by the end of this year.
According to figures from Which? magazine, an estimated £65 million would have been pocketed by companies until the law comes into force.
In future, airlines and other companies will have to embed the fees into the headline price of the flight should they wish to continue charging more.
Whilst some are continuing to keep fees hidden until the end of the transaction, others are already changing their policies. EasyJet for example, has added an extra £9 to their ticket price, but does not charge an admin fee.
If you are considering booking a holiday, it could be worth doing so on a credit card , that way if a company or airline fall into administration, your money has a greater chance of being protected.