Starting July, air tickets for local and international travel in Kenya were costing more after the Kenya Airports Authority (KAA) increased airport departure taxes for all domestic and international travel as announced in the 2016/2017 financial budget.

Airlines collect airport taxes on behalf of the airport authority by itemising them as part of the ticket cost.
Have you ever wondered what makes up the taxes and other charges that are usually quoted by the airline and then lumped together with the base fare to give you a total amount for your ticket?

They are why in some instances, the price you pay for a ticket is much higher than what the airlines advertise as the base fare.

Unlike in the US and the European Union, where airlines are compelled by law to quote the full price to be paid for air fare inclusive of all taxes, fees, and charges at the first point when the passenger is presented with a price offer, consumer protection legislation in Africa has not developed to adequately cover aviation needs.

While both the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA) come up with resolutions and conventions on a continuous basis to better the travel experience, there is very little within the jurisdiction of African countries requiring that airlines strictly comply with consumer protection laws pertaining to full fare quotation disclosure when advertising fares.

However, in an attempt to appear cheaper than the competition, you can expect that some (or most) airlines in the region, prefer base fare advertising while taxes are usually communicated once the passenger embarks on the ticket purchasing process.

Throughout the region and depending on the airport of departure there are many forms of travel taxes, fees and charges levied by governments and airport authorities, most of which are collected by airlines on behalf of the authorities.

However, some countries have departure taxes paid directly by the traveller to the authorities at the airport as one exits.

While airlines would have you believe that all taxes, fees and charges are imposed by government, some fees collected by airlines under the guise of taxes are not remitted to any authority.

These other fees are known as carrier-imposed charges and fees. A case in point here is the “fuel surcharge,” usually indicated as “YQ” and “carrier imposed miscellaneous fees” usually known as “YR.”

A close examination of your ticket will show that the bulk of the travel taxes, fees and charges is allocated to YQ/YR. To put it plainly, any charges and fees listed under this category on your ticket, one revenue due to the airline.

You wonder why an airline would allocate a huge chunk of its fees to fuel surcharge yet on the other hand they still hedge on fuel or negotiate fixed rates over extended periods with fuel suppliers.

Let us examine two popular routes in the region.

A return ticket search on a busy airline servicing the Nairobi-Entebbe sector will give you the following fare breakdown on close estimates: Base fare of $280, airline, fuel and insurance surcharge of $4, carrier imposed surcharge of $200, airport passenger service charge of $52, Uganda passenger service charge of $50, and a security charge of $10.4).

While the above airline would have you believe that the base fare is $275, the actual fare collected by the airline is $380. Taxes due to external authorities are only $112 in this instance.

A second example would be a return ticket on the sector Nairobi-Addis Ababa using a leading carrier on the route, giving the following fare breakdown on close estimates; a base fare of $157, a carrier imposed surcharge of $80, airport passenger service charge of $50 and other charges amointing to $30.

In the above example, the airline actually collects $240 as opposed to the perception created of $160). It is no wonder that at times taxes, fees and charges appear higher than the base fare.

Most airlines set fuel and carrier imposed surcharges arbitrarily due to absence of regulations, hence you will find that two carriers serving the same route will have different fees on these items.

The savvy traveller should understand the fare, taxes and charges breakdown while comparing air fares for the best deal.

Michael Otieno is an aviation consultant based in Nairobi. Twitter: @pmykee143