Exeng, not sure why airlines would profit anyway, if holiday prices went up. Perhaps they meant holiday companies.
At the ABTA conference in Portugal yesterday, it was claimed that travel agents and tour operators had lost £150 million in the 4 weeks after 11/9, because people cancelled their holiday plans.
They are hoping to change the 2% rule - At present, holiday companies must absorb cost increases of up to 2 per cent of the package price - representing about £10 on the average package to a Mediterranean resort. They cannot apply a surcharge within one month of the departure date but Abta wants the right to apply the full amount up to 20 days before the holiday starts.
They are already having to absorb the security surcharge imposed by the airlines - £2.50/flight at BA.
Cannot see many people booking holidays with the prospect of "unlimited" surcharges to be applied!