Jetstar travellers will pay up to 1.06% of their airfare as a credit card booking fee from September 1.
Qantas' low-cost sibling is the latest airline to switch from flat fees to a percentage-based system, in line with new rules set by the Australian Competition and Consumer Commission and the Reserve Bank.
In place of Jetstar's previous 'booking and service fee' of $8.50 for domestic flights and $8.50 to $12.50 for international flights, passengers will now pay the following percentage of their ticket as a booking fee
- 1.06% for credit cards (including Visa, MasterCard, American Express and Diners)
- 0.75% for PayPal
- 0.48% for debit cards
Tickets purchased with a Jetstar MasterCard, Jetstar Platinum MasterCard or POLi won't attract any booking fee.
Unlike the surcharge caps imposed by Qantas and Virgin Australia – which limit fees to $11 for domestic and trans-Tasman fares and $70 for international tickets, Jetstar's percentage-based booking fees will be uncapped.
This means the average $1,200 business class fare on Jetstar's Boeing 787 to Tokyo, for example, will attract around a $12 booking fee.
"The majority of Jetstar customers will pay less in fees than they currently do, and there’ll continue to be fee-free options for customers who prefer not to pay with a credit card" a Jetstar spokesman told Australian Business Traveller.
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