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Budget airline fees 'are unfair' | Budget airline fees 'are unfair' |
(about 3 hours later) | |
Budget airline passengers are paying more than the price advertised because of extra costs, a Which? survey claims. | Budget airline passengers are paying more than the price advertised because of extra costs, a Which? survey claims. |
Firms are charging extra fees for items such as luggage check-in adding as much as £28 to ticket prices, Which? found. | Firms are charging extra fees for items such as luggage check-in adding as much as £28 to ticket prices, Which? found. |
Ryanair said charges were discretionary and largely avoidable, while Easyjet said the consumer group misunderstood the business model of budget airlines. | Ryanair said charges were discretionary and largely avoidable, while Easyjet said the consumer group misunderstood the business model of budget airlines. |
Ryanair reported passenger numbers up 18% in December on a year ago, while rival Easyjet saw numbers climb 9.9%. | Ryanair reported passenger numbers up 18% in December on a year ago, while rival Easyjet saw numbers climb 9.9%. |
However, shares in Easyjet were trading 13% lower in late afternoon trade at 466p after its load factor - which denotes the number of seats sold as a proportion of total seats available - fell to 78.9% in December, down from 81.2% a year earlier. | |
Ryanair shares dropped 5% to 3.88 euros. Its latest update, released on Friday, had shown its load factor dropping to 79% in December from 81% the year before. | |
Misleading? | |
Budget airlines have been increasingly charging for services that in the past have been included in the price of a ticket, Which? said. | Budget airlines have been increasingly charging for services that in the past have been included in the price of a ticket, Which? said. |
See the different charges | |
According to Office of Fair Trading (OFT) rules, airlines must include taxes and other compulsory charges in their headline prices. | According to Office of Fair Trading (OFT) rules, airlines must include taxes and other compulsory charges in their headline prices. |
"If these costs are genuinely optional then we would not generally object to them being displayed separately, provided they are clear to consumers," said the OFT. | "If these costs are genuinely optional then we would not generally object to them being displayed separately, provided they are clear to consumers," said the OFT. |
We think Ryanair's charge to use its check-in desk is unfair. You can only avoid it if you don't check luggage into the hold Which? magazine | |
But the watchdog said if any of these charges were not optional and airlines advertised flights as "free" (or used a similar statement) or implied that consumers did not have to pay any extra charges then "this is likely to be misleading". | But the watchdog said if any of these charges were not optional and airlines advertised flights as "free" (or used a similar statement) or implied that consumers did not have to pay any extra charges then "this is likely to be misleading". |
Ryanair was seen to charge the highest extra costs, by adding a £4 fee for checking in at the desk instead of online, and £20 for checking a bag into the hold. | Ryanair was seen to charge the highest extra costs, by adding a £4 fee for checking in at the desk instead of online, and £20 for checking a bag into the hold. |
Priority boarding cost an extra £2 per flight - it was only free for passengers who checked in online and had no bags for the hold. | Priority boarding cost an extra £2 per flight - it was only free for passengers who checked in online and had no bags for the hold. |
Ryanair said it wanted to encourage passengers to travel with hand luggage only and to check in online. | Ryanair said it wanted to encourage passengers to travel with hand luggage only and to check in online. |
The survey said overall total extra costs, including credit card charges, could be as much as £32 in Ryanair's case, just under £30 for Easyjet and just under £25 for BMIbaby. | The survey said overall total extra costs, including credit card charges, could be as much as £32 in Ryanair's case, just under £30 for Easyjet and just under £25 for BMIbaby. |
Monarch Airlines, which in November was the latest firm to start charging for checking in baggage by setting a £3.99 fee per item, was seen to charge as much as £23.50 on top, while Flybe's total extras totalled were around £23. | Monarch Airlines, which in November was the latest firm to start charging for checking in baggage by setting a £3.99 fee per item, was seen to charge as much as £23.50 on top, while Flybe's total extras totalled were around £23. |
Which? said it had spoken to the Air Users Transport Council which said nothing stops airlines from adding extra costs but that it would look into the issue. | Which? said it had spoken to the Air Users Transport Council which said nothing stops airlines from adding extra costs but that it would look into the issue. |
"We think Ryanair's charge to use its check-in desk is unfair. You can only avoid it if you don't check luggage into the hold," Which? said. | "We think Ryanair's charge to use its check-in desk is unfair. You can only avoid it if you don't check luggage into the hold," Which? said. |
Analyst Howard Wheeldon of BGC partners said "it looks as if the EasyJet trick of attempting to add revenue charging for checked luggage may not have gone down that well". | |
He added that if EasyJet needed to raise revenue and it couldn't do so "in the conventional competitive way" then it would have to raise ticket prices. | |
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Have you been affected by the issues covered in this story? How much have you paid for a ticket? Do budget airlines offer good value for money? Send us your comments and experiences using the form below. | Have you been affected by the issues covered in this story? How much have you paid for a ticket? Do budget airlines offer good value for money? Send us your comments and experiences using the form below. |