Airlines accused of ramping up prices in wake of Thomas Cook collapse

Airlines have been accused of ramping up the cost of flights following the collapse of Thomas Cook.

The firm operated its airline out of Manchester and around 3,000 jobs are thought to have been lost in the North West following the collapse of the world’s oldest travel business.

A major repatriation operation has been launched but other airlines have been accused of cashing in on the situation.

Angry travellers took to social media channels to accuse airlines of making the most of the situation.

But analysts said the price increases reflect high demand on routes with few spare seats.

John Strickland, an airline analyst at JLS Consulting, said: “People aren’t sitting there rubbing their hands with glee. If sales come in rapidly on popular routes then prices go up.

“September is a popular time for people to take holidays outside the peak school holiday period and many flights were already very full.

“Thomas Cook has failed because it had massive debts and it was making a loss. It’s a fragile industry. More than a dozen airlines have gone bust.

“If the airlines don’t make profits where they can on a minority of flights then they don’t stand a chance of surviving.”

A spokesperson for Jet2.com said: “Our pricing, as is common practice in the travel industry, is based on the principle of supply and demand.

“As supply reduces, an inevitable consequence is that prices increase. However, we are looking at adding more supply to help customers at this time.”

Virgin Atlantic said the airline operates a ‘dynamic pricing system that is based on availability and demand’.

A statement added: “We have not increased fares on specific routes that were previously also operated by Thomas Cook, nor have we changed any of our pricing policies since Thomas Cook ceased trading.

“We always want to provide the most competitive prices for customers wishing to book future trips with us, and as with all airlines, we operate a dynamic pricing system that is based on availability and demand.”

A special task force has been set up in Manchester to support those affected by the collapse.

Mayor Andy Burnham

Mayor of Greater Manchester, Andy Burnham, said: “My heart goes out to all those affected by the collapse of Thomas Cook.

“I know this news has hit them very hard, leaving them without a job and in many cases three weeks’ pay.

“But we need to give people more than just warm words, which is why we have been working hard to put in place practical support.

“The Greater Manchester family has been swift to respond and it’s good that a website and contact telephone number have been established where staff can log on, register and access practical support and information when it comes to next steps.”

Dame Deirdre Hutton, chair of the Civil Aviation Authority (CAA), described the repatriation of holidaymakers on Monday as “a pretty good day for a first day”.

She told the BBC “We ran 64 flights, we brought back just under 15,000 people. That was over 90% of those we intended to bring back.

“I’m conscious that we’ve got a huge job to do still, because that’s about 8% of the total, but a reasonable start.

“We’ve got 74 flights today and are hoping to bring back 16,500 people, but (have) 13 days to go and 135,000 passengers still to bring back.

“The cost split is 60% Atol and 40% non-Atol.”