Despite a United Kingdom Office of Fair Trading investigation looking into the debit and credit card fees the country’s airlines charge, easyJet Airline Co. Ltd. continues to increase its debit card fees for flight bookings, PaymentsSource has learned.
The UK-based budget airline has raised its debit card booking fees three times during the past seven months. Consumers paying for flights using a debit card now pay £8 (US$13 or 9 euros), up 45% from the £5.50 the airline formerly charged. Credit card fees, which have not changed, are £12.95 or £8 plus 2.5% of the flight cost, whichever is higher.
EasyJet waives charges for passengers using partner cards such as Visa Inc.’s Electron card and MasterCard Worldwide prepaid cards.
Many consumer-advocacy groups, including UK-based Which?, believe airlines charge more than their actual booking costs, claiming the average debit card transaction costs them about 20 pence while credit card transactions cost no more than 2.5% of the total sale.
Which? in February announced plans to file a complaint with the Office of Fair Trading seeking to investigate card surcharges, especially those imposed online by airlines and providers of tickets for movies and other events (
Since Which? submitted the complaint in March, the agency has launched an investigation regarding unfair debt and credit card surcharges. The office plans to publish its findings in June.
A Which? representative was unable to comment on easyJet’s most recent fee increase by PaymentsSource deadline.
Despite criticism from consumer-protection groups, easyJet believes its booking fees remain among the least expensive across the airline industry, a spokesperson for the airline tells PaymentsSource. “Other airlines charge per person per flight, so a family of four may be charged £48 rather than only £8,” she explains. EasyJet does not charge per person but per flight.
Moreover, easyJet “is transparent about its card charges, breaking out the different costs in the booking process so consumers may see the low fare for the flight and the different options for ticket purchasing,” the spokesperson says.
Easyjet’s booking fees cover a range of activities, and the airline has experienced significant cost increases in a number of those areas, she notes.
However, increasing booking fees while an investigation is under way is like “putting your head in a crocodile’s mouth,” says Matt Simester, director of Auriemma Consulting Group in the UK. It is poor timing and probably an aggravating factor for many consumers, he says.
Because of booking fees and other charges for luggage and priority seating, many larger carriers are less expensive because they do not charge as many fees, Simester adds.
The increase in fees also may widen the scope of how companies present other products to the market across all segments, Simester says. The reviews will not just stop with airlines, he contends.
