As airlines respond to rising operating costs by introducing or increasing fuel surcharges, questions are mounting about how clearly these charges are communicated to travellers.
The World Travel Agents Associations Alliance (WTAAA) is calling on airlines to adopt a more transparent and collaborative approach to airline-imposed surcharges, warning that inconsistent and opaque surcharge practices are eroding consumer trust.
According to the WTAAA, airline-imposed surcharges, often coded as YQ or YR on tickets, were originally associated with fuel-cost recovery but are now used more broadly by some carriers as carrier-imposed charges.
Instead, they sometimes appear under different labels, including ‘fuel surcharge’ or ‘international surcharge’, and inconsistent terminology and treatment can make it difficult for consumers to understand the true price of travel.
Refund policies
There is also growing concern about cases where surcharges are not refunded following flight cancellations initiated by the airline. In many regions, including the EU and the US, refund regulations require passengers to be reimbursed the full ticket value, including applicable airline-imposed fees, when they are entitled to a refund. The WTAAA has raised concerns that these surcharges are not always refunded.
“While the WTAAA is not opposed to legitimate cost recovery to support airline operations in a volatile geopolitical and fuel environment, greater transparency on airline-imposed surcharges would help strengthen consumer trust across the value chain. We support transparent pricing practices that help consumers understand the full cost of travel and reinforce confidence in the professional travel distribution system,” said Otto de Vries, Executive Director of the WTAAA.
To help agents better communicate with and guide clients, the WTAAA is calling on airlines and relevant industry bodies to work towards the following:
- Clear and consistent disclosure of airline-imposed surcharges at the point of sale and throughout the booking journey.
- Full incorporation of airline-imposed surcharges into base fares to eliminate fragmented pricing and improve transparency.
- Fair and prompt refund treatment of those charges when flights are cancelled and a refund is due.
- Reasonable notice of surcharge changes so intermediaries and consumers are not blindsided.
- Industry dialogue on simpler, more transparent fare presentation that improves comparability for consumers.
