Airlines’ practice of hitting passengers with add-ons at the booking stage is facing public scrutiny through a government consultation.
Government research found that ancillary costs across a range of industries, including extra charges for specific seats or additional bags on flights, cost consumers £1.6 billion a year.
Given costs are often not advertised in the original price of flights, making them look cheaper at first glance, the consultation will seek ways to clamp down on the practice.
The Department for Business and Trade consultation will last six weeks from Monday, covering a range of industries, including the aviation sector.
“Fake reviews and hidden fees can make choices increasingly confusing and leaves customers unsure about what product is right for them,” business minister Kevin Hollinrake commented.
Airlines generated some £81 billion through ancillary costs last year, in stark contrast with the £31 billion made through such add-ons in 2013.
Ryanair Holdings PLC (LSE:RYA) and easyJet PLC are among those to score significant proportions of revenue through these costs, with both seeing marked increases in their latest respective quarters.
Ancillary sales generated a total of €1.18 billion (£1.01 billion) for the Irish carrier during the first quarter—up 15%—of total revenue worth €3.65 billion.
easyJet marked a 28% increase in ancillary revenue in its latest quarterly results meanwhile, to £622 million, as passenger revenue climbed to £1.5 billion.
Per average passenger, Ryanair made €23.30 in ancillary revenue in the three months to June, while easyJet gained £23.75.
Though the costs range from priority boarding to food and drink on flights, reports have slated airlines for charging hefty prices for services such as printing ticket at airports.
The industry backed keeping such costs separate to ticket prices, arguing it allowed for better deals.
“Delivering value for consumers is at the heart of an airline business, with the competitiveness of the industry meaning it already delivers excellent choice, service and value to consumers,” trade group Airlines UK commented.