Travel buyers will soon have to incorporate the cost of credit card merchant fees into their budgets, according to a top travel management executive.

Speaking to delegates at an Association of Corporate Travel Executives (Acte) forum in London, Thane Jackson, BCD’s general manager north division, predicted that airlines suffering the effect of soaring oil prices will pass on credit card charges to save money.

“The airlines lose £500 million per annum on merchant fees imposed by credit card companies,” he said. “Ultimately this cost will be passed on to the corporates. These carriers are losing vast sums of money, so if they are to trim costs it will inevitably be looked at.”

Iata figures released yesterday estimated that global airline profits will plummet this year from a £6 billion profit last year to a £6 billion deficit this year.

Commenting on the figures Giovanni Bisignani, Iata’s director general and chief executive, said yesterday: “The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry’s profitability.” 

“While there has been some relief in the oil price in recent months, the year-to-date average is $113 per barrel. That’s $40 per barrel more than the $73 per barrel average for 2007, pushing the industry fuel bill up by $50 billion to an expected $186 billion this year.”

Despite the present gloom, Jackson maintains a positive outlook about the future of the aviation industry.

“With mergers and acquisitions we will probably see less players in the market, but that should lead to better efficiency.

“However, for the corporate community it will mean higher fares, credit card fees and more booking costs through the global distribution system.”

Marianne Sammann, Lufthansa’s UK general manager, also speaking at the Acte forum in London, did not deny that airlines would consider passing on merchant fees but insisted consumers would benefit in the long-term.

“Demand is softening in the leisure sector just now, but this is only temporary. In the future the traveller will have far more choice and flexibility when it comes to air travel.”