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Air passengers facing increased fares to help stranded Brits abroad

Robin Bowman

Robin Bowman
Apr 16, 2018

Travelling by air may be about to get more expensive, experts say.

This is due to the rising cost of funding flights for Brits who get stranded abroad when airlines go bust.

Industry experts say this cost is likely to be passed on to passengers by airlines

The Department for Transport has ordered a review and has said passengers who have flight-only tickets may have to be covered by the Air Travel Organiser's Licence (Atol) scheme.

This adds £2.50 to package holidays. Alternatively, passengers could be required to buy insurance to cover them in the event an airline goes bust.

The review was ordered following the collapse of Monarch Airlines in October. This left over 110,000 passengers stranded abroad – flying them home cost £60 million. Most were on tickets not covered by Atol.

Airlines would probably oppose any attempt to add insurance to the price of tickets, reports The Times. However, Peter Bucks, chairman of the review and a former senior financial adviser to Ofgem, said that change was needed because the scale of competition in the airline industry combined with growing financial pressures could lead to more carriers going bust.


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