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IAG to raise GDS surcharge

British Airways A320 short-haul aircraft

International Airlines Group (IAG) has warned agencies that GDS surcharges for British Airways and Iberia will increase by £1 per leg from 18 September.

The current £8/€9.50 fee was introduced in November 2017 and essentially means return flights booked through indirect channels (namely the GDSs) incur a £16 charge.

BA and Iberia quickly struck deals with several TMCs to offer corporate clients a way to waive the fee, encouraging bookings made through direct and New Distribution Capability (NDC) channels.

When the new fee takes effect, bookings made through indirect channels will incur a £9/€10.50 per leg or component charge.

The move brings BA and Iberia’s fee nearly in line with with Air France KLM's €11 per leg fee introduced in April 2018.

Lufthansa – the first airline to levy a GDS fee – has maintained its cheaper €16 per round trip charge.

In a statement to BBT, a spokesperson for BA commented: “The increased Distribution Technology Charge (DTC) applies to bookings that are not made using a New Distribution Capability-based connection, or through other low-cost channels such as our website, airline sales offices and call centres, or the IAG booking portals.

“We periodically review our distribution costs to ensure that the DTC reflects the current additional costs incurred for bookings through higher-cost channels.”

ba.com; iberia.com

Comments

The 16€ LHG charge applies per ticket not per segment. Do I understand it correct that a return with BA/IB will end up with £18/€21 and AF with 22€?

Paul Westchester's picture
Paul Westchester (not verified)

You are correct about the charges here Paul. Lufthansa charges €16 per round trip, whereas the BA charge will be €21 for a return ticket from tomorrow.

Molly Dyson's picture
Molly Dyson

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