Airlines plan to increase travel insurance fees

A study of major airlines has found that two-thirds of them plan to increase the cost of extras, such as travel insurance.

The survey, carried out by ancillary revenue specialist Collinson Latitude, found that 65 per cent of airlines planned to raise additional charges over the next 12 months.

In some cases, the costs will rise by as much as 20 per cent within a year.

Air France has just announced that it will increase its fees for check-in baggage, adding a charge of £30 for a second bag on flights from Europe to the United States from November 1.

Cash-strapped airlines, many of which are making huge losses, see charges for ancillary services, such as car hire and travel insurance, as an easy way to boost revenue.

Passengers can avoid some of these planned price hikes by buying ancillary products, such as travel insurance, elsewhere.

Travel insurance policies sold by airlines are often more expensive than comparable travel insurance available through online providers, like insurewithease.com.

However, airlines are also planning to increase the cost of obligatory ancillary services, such as check in and baggage fees.

British Airways has already introduced baggage fees, charging passengers between £35 and £80 for a return flight. It will also be charging passengers to carry winter sports equipment for the first time this year.

Ryanair, one of the first airlines to charge passengers for check-in baggage, astonished passengers by increasing its fees by 50 per cent last month.

The so-called 'low-cost' airline now charges a whopping £110 to passengers who check in two bags on a return flight. A single bag costs £30 return.

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