fees

All of the strict airline fees being SCRAPPED and it will save families hundreds

SEVERAL new passenger rights are set to come into force across the UK and Europe.

It’s good news for Brits as there are new passenger rights coming into force that could save families hundreds.

New passenger rights are being introduced in the UK Credit: Alamy

From parents being allowed to sit with their child for no extra cost to new luggage rules, travellers won’t have to fork out as much for hidden extra costs.

Here’s a rundown of all the new rules coming into force across the UK and Europe:

Sitting with children

Under the new rules, airlines can no longer charge for certain extras including parents wanting to sit with their child.

According to the Government, a parent and child are charged up to £104 on a return journey for sitting together.

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Prime Minister Andy Burnham said: “Charging parents just to sit with their children is a rip-off, plain and simple.”

Transport Secretary Heidi Alexander said: “Parents should not have to feel the pinch just to sit next to their child on a flight, or for amending a simple booking error.

“That’s why we’re scrapping these unnecessary charges for all airlines.

“Another everyday fix to help put money back in people’s pockets and give households more breathing room.”

It will bring UK traveller rights more in line with EU traveller rights Credit: Alamy
Collage of travel items including a plane, sunscreen, passport, suitcase, and plane tickets, advertising The Sun's travel Instagram account.

Booking error corrections

Another rule being introduced means that passengers will have greater flexibility to correct name errors on bookings for free.

If you needed to correct something on your booking before, such as a spelling mistake in your name, then it could have cost you as much as £40 to change.

Andy Burnham added: “Being hit with a hefty fee for a simple spelling mistake on a booking form isn’t right.

“People are fed up with these little charges that add up, so I’m putting a stop to them.

“This is what our everyday fixes are all about.

“Giving people room to breathe by tackling the small irritations that catch people out, waste their time and cost them money.”

Changing your booking details could have cost you £40 previously Credit: Alamy
Europe is in the process of changing luggage rules Credit: Alamy

Luggage fees – Europe only

The EU is looking to make hand luggage free as part of a major overhaul of passenger rights.

Back in June, the European Parliament and EU member states agreed on new air passenger rules, which would include allowing passengers to have two pieces of hand luggage free of charge.

This would be one small personal item that usually fits under the seat in front of you and a larger cabin bag weighing up to 7kg.

The new rules are expected to come into force in October 2027 at the earliest.

However, for Brits, the rules won’t apply on outbound journeys – say from London to Majorca, in Spain.

It will apply to UK passengers on their return leg, though from an EU country, so theoretically if you wanted to do lots of shopping abroad you won’t have to pay for that extra case on the way back home.

Airlines, such as easyJet, are currently reviewing their luggage rules though and the UK Government could also make the same rule in the future.

With easyJet for example, if you want a cabin bag measuring up to 56 x 45 x 25cm, you’ll need to pay extra for it and the price varies depending on demand, the route, your flight date and the time of booking.

Though if you get to the gate and haven’t paid for a cabin bag but have one with you, you will be charged £60.

For Ryanair, if you want a cabin bag measuring up to 55 x 40 x 20cm, then it will cost you between £12 and £36 at the time of booking, or between £20 and £60 when at the airport.

For a family of four, this could cost as much as an additional £240 per way, so £480 per return flight.



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Airlines set to be banned from charging rip-off fees for parents to sit next to their children on flights

PARENTS will no longer be stung with rip-off fees just to sit next to their children on flights.

Airlines will be forced to seat under 14s beside a mum, dad or an accompanying adult for free.

A mother and her smiling daughter sitting together in an airplane, with the daughter holding a blue stuffed toy.
Parents will no longer be stung with rip-off fees just to sit next to their kids Credit: Getty
Row of three chairs with blue armrests inside an airplane.
Airlines will be forced to seat under 14s beside a mum, dad or an accompanying adult for free Credit: Getty

It could save families up to £104 on a return trip.

Passengers will also be able to fix simple spelling mistakes on bookings without being hit with charges of up to £40.

PM Andy Burnham said: “People are fed up with these little charges that add up.

“So I’m putting a stop to them.”

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“This is what our everyday fixes are all about.

“Giving people room to breathe by tackling the small irritations that catch people out.

“They waste their time and cost them money.”

Ministers are also drawing up a system to help airlines identify repeat troublemakers.

It comes after more than 1,000 serious disruptive incidents were logged last year.

It could make it easier to extend bans on passengers who repeatedly cause issues.

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‘Rip-off’ airline charges including fees for parents to sit next to children under 14 to be banned

Holidaymakers will also be given greater flexibility to correct simple name errors including spelling mistakes on bookings for free – rather than facing charges

Rip-off airline charges including hidden fees for parents to sit next to children under 14 will be banned under government plans.

Holidaymakers will also be given greater flexibility to correct simple name errors including spelling mistakes on bookings for free – rather than facing charges.

Under the proposals unveiled today, airlines will be required to seat children under the age of 14 with a parent or adult accompanying them free of charge.

Andy Burnham said: “Charging parents just to sit with their children is a rip-off, plain and simple. And being hit with a hefty fee for a simple spelling mistake on a booking form isn’t right either.

“People are fed up with these little charges that add up, so I’m putting a stop to them. This is what our everyday fixes are all about. Giving people room to breathe by tackling the small irritations that catch people out, waste their time and cost them money.”

Earlier this year the Competition Markets Authority (CMA) investigated budget airline Ryanair over such charges costing around £8 each way.

Under the airline’s old policy parents had to book a “mandatory family seat” to sit with their children aged 2-11 in order to secure a seat when they flew.

But Ryanair – which the CMA said was the only major operator to charge such a fee – changed its policy in June with kids up to the age of 11 seated next to their parents free of charge.

It’s website now states: “For safety reasons, children aged between 2 and 11 years must sit next to an accompanying adult, and infants (8 days to 23 months inclusive) must sit on an accompanying adult’s lap. Families may choose either to reserve seats or select free random allocation.

“If random allocation is selected, children will be seated next to an accompanying adult on the same reservation free of charge. Other adults and teens on the booking may be allocated seats separately.”

The government said that while some airlines already offer protections on fees, the reforms will guarantee the same rights for passengers – despite who they fly with.

British Airways policy already makes clear children up to the age of 12 will be seated for free. It states: “To ensure your family has the best seats when you fly, we recommend choosing yours in advance when you book. There may be an additional fee for this.

“If you don’t choose your seats in advance, we always do our best to seat your family together based on flight seat availability. This may mean that you’ll be seated in adjacent rows or across the aisle. All children under 12 will be seated with an accompanying adult.”

EasyJet’s policy adds:”If you leave it to the last minute it’s possible that there may not be enough seats left for us to seat your family next to each other.

“We’ll still make sure each child under 12 is seated close to an adult on your booking. However we may only be able to arrange this at the airport or on board, which can cause delays for you and other passengers, and not everyone may be seated together.”

The government said the move was the latest in the PM’s attempts to give people breathing space, including action already unveiled on costly subscription traps and school uniform rip-offs.

Heidi Alexander, Transport Secretary, said: “Parents should not have to feel the pinch just to sit next to their child on a flight, or for amending a simple booking error. That’s why we’re scrapping these unnecessary charges for all airlines – another everyday fix to help put money back in people’s pockets and give households more breathing room.

“And everyone deserves to travel knowing their flight isn’t going to be disrupted by bad behaviour from a small minority. These common-sense reforms will make flying safer for staff and passengers and protect people from unnecessary charges, whoever they fly with.”

Rory Boland, Editor of Which? Travel, added: “It’s clearly unfair to force parents and children as young as three to pay an extra fee just to sit together. Airlines that have separated families are putting profit ahead of passenger peace of mind.

“Which? has successfully pressured many airlines into dropping these fees over the past ten years. So it’s welcome to see the government taking firm action on this by outlawing these charges completely and finally putting an end to this rip off.

“It is also positive to see greater flexibility to amend simple mistakes, protecting consumers from unnecessary charges.”

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Private Credit Fees Tick Higher

Investors, though, continue to debate the true cost of owning private credit funds.

This article appears in the September 2026 issue of Global Finance Magazine.

*Reflects 2021, 2022, and 2024 vintages; 2023 was not reported by Preqin. Trough-period mean shown at the midpoint of Pregin’s reported 1.25%-1.32% range. Source: Pregin, Private Credit in 2026.

For the first time since the Covid-19 pandemic, private credit’s headline management fees are returning to historical norms.

According to data analytics firm Preqin’s latest fund-terms report, direct-lending funds raised in 2025 charged a mean management fee of 1.42% and a median of 1.50%, essentially matching the asset class’s long-term 2005-2025 averages of 1.43% and 1.50%, respectively.

That marks a sharp reversal from the post-pandemic doldrums, when managers cut prices to compete for a shrinking pool of investor capital amid weak fundraising and slow distributions. The median fee on direct lending funds fell to just 1%, and the mean sank to historic lows of 1.25% to 1.32%. 

Now, competition for capital appears to be easing at the top of the market, while headline prices tick higher. However, beneath the headline numbers, what investors are paying is a more complicated matter. 

“The headline management fee tells you very little about what investors actually pay,” said Ludovic Phalippou, a professor of financial economics at Oxford University’s Saïd Business School. “I expect the true all-in cost to be very high.” 

Chad Timko, senior investment officer at the Los Angeles County Employees Retirement Association (LACERA), one of the largest U.S. public pension funds, valued at $93.9 billion, made a similar point from the practitioner’s perspective: “How a manager pays for performance can be just as important as the performance itself.”

Pricing Power at the Top

The share of LPAs offering early-investor or large-commitment discounts also fell, from 41% of 2016-2018 vintages to 33% of 2022-2024 vintages. Source: Preqin’s Term Intelligence, data as of March 2025.

The reversal in headline fees isn’t happening evenly. Preqin’s data links it directly to performance. For funds raised between 2015 and 2019, top- and bottom-quartile managers charged nearly identical fees, averaging about 1.42%. For 2020-24 vintages, that changed; top-quartile funds held their fees near 1.42%, while fees in the lower three quartiles fell to between 1.24% and 1.29%.

Behind that split lies a market that has become sharply concentrated among a small number of managers. Two-thirds of all private-credit capital raised in 2024 went to the 20 largest funds, up from less than half in 2020, according to Preqin. 

Average fund size has continued to climb for experienced managers, but first-time managers’ fund sizes have remained flat at roughly $120 million for five years. Fee discounts have followed the same pattern; the share of fund agreements offering early-investor or large-commitment discounts fell from 41% for 2016-18 vintages to 33% for the 2022-24 period, and the size of those discounts has also shrunk.

Some investors view the buildup of capital among top managers as a warning sign. Pension money pouring into private credit in recent years has “got out of hand,” loosening underwriting standards across the industry, said Mark Steed, CIO of the $25.8 billion Arizona Public Safety Personnel Retirement System. “There’s going to be a shakeout.”

Investor sentiment has grown more cautious even as realized results tick up. In Preqin’s most recent survey, 35% of institutional investors called private credit assets overvalued, up 16 percentage points year-over-year, and 37% expect performance to soften over the next 12 months, chiefly citing the path of interest rates.

Similarly, PwC’s 2026 global private credit survey identified ongoing fee competition among managers as a top concern heading into this year. 

Capital concentration isn’t unique to developed private credit markets, either, though it takes a different shape elsewhere. India’s private credit market grew 35% year over year in 2025, to roughly $12.4 billion. 

“Domestic funds represented over 64% of total deal value, pointing to the increasing depth of local capital,” noted Syed Hasan Jafar, vice dean of the School of Business and head of the Department of Finance at Woxsen University.

What Are Investors Really Paying?

Despite the recorded uptick in fees, it remains unclear whether investor expenses are moving along with the trend. 

Preqin’s figures track the headline contractual management fee rate written into a fund’s limited partnership agreement (LPA) at formation: not fund expenses, fee offsets, transaction and monitoring charges, or, in newer semi-liquid vehicles, fees calculated on NAV rather than committed capital.

“We still do not have a reliable measure of total expense ratios in private credit,” said Oxford’s Phalippou. The problem is structural, he said. “Private credit has essentially inherited the same fee model as private equity, so the transparency problems are very similar. In semi-liquid products, the situation can actually be worse because some fees are calculated based on NAV. That creates additional opportunities for gaming.”

Despite the increase in headline fees, alternative investment adviser and fund manager Cliffwater’s 2025 survey of direct lending funds found total blended costs — management fees plus incentive fees and expenses — roughly flat or lower, not higher. Proskauer’s most recent private credit survey shows that commitment and arrangement fees — a separate one-time charge — continue to fall. 

Neither Cliffwater’s nor Proskauer’s findings contradict Preqin’s data; they measure different metrics. Together, they suggest that while the sticker price at the top of the market is rising, what investors pay all-in remains unclear. 

Resistance to trading private assets more openly “generally means your fee is above where it’s supposed to be, and you don’t want to shine a light on it,” said Apollo Global Management chairman and CEO Marc Rowan.

Ludovic Phalippou,
Oxford University

Phalippou is skeptical, in any case, that investors have much power to push back, regardless of which way headline fees move. 

“The uncomfortable truth is that most LPs have very little negotiating leverage,” he said. “For the vast majority of investors, these are effectively take-it-or-leave-it contracts.” The result, he adds, is that fees persist “not because they have been negotiated, but because the market structure allows them to persist.”

LACERA addresses the problem by measuring “investor profit retention,” the share of investment gains it retains after all fees, rather than fixating on the headline management fee rate, Timko said. Because its capital bears the full risk of loss, LACERA expects “to retain a super-majority of the gains generated,” with manager compensation weighted toward a performance fee that pays out only above a hard hurdle rate of cash plus a spread, rather than a flat charge on committed capital. 

It is, in effect, a bet that the real fight over cost in private credit is not about the sticker price but about how gains are split once they materialize.

Thomas Monteiro is a contributing writer based in Spain.

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Major UK airport hikes drop off fees for SECOND time in a year

A MAJOR UK airport has quietly increased its drop off fees.

London Luton Airport passengers must now pay £9 to drop off, rather than £7.

Yellow sign at London Luton Airport reads "Terminal Drop Off Charges Now Apply".
Sign at entrance to Luton Airport warning motorists that terminal drop off charges now apply Credit: Alamy

The time has been slightly extended, with the fee covering up to 12 minutes, rather than 10 minutes.

After 12 minutes, drivers are also charged an extra £1 per minute, meaning you could pay up to £27 if waiting the max 30 minutes.

The fee must be paid online or by phone by midnight the day after the drop off.

Many travellers have taken to social media outraged by the increase.

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One person said on Facebook: “Free in most European countries!”

Another added: “£7 was bad enough!”

A third person said: “Paid it this morning, spent three minutes in the drop off zone, crazy cost.”

Luton Airport last raised its drop off fee in late September 2025, meaning this is the second time in a year the airport has raised the fee.

The fee was raised by 40 per cent in 2025 from £5 for five minutes to £7 for 10 minutes.

The price hike was the first at the airport in five years.

Aerial view of London Luton Airport, Bedfordshire, UK.
F8EAX2 An aerial view of London Luton Airport. Bedfordshire, UK Credit: Alamy
Collage of travel items including a plane, sunscreen, passport, suitcase, and plane tickets, advertising The Sun's travel Instagram account.

Over the past year several airports have raised drop off fees, causing outrage among travellers.

Earlier this year, Stansted Airport raised its drop off fee from £7 to £10, for up to 15 minutes.

In 2025, Edinburgh Airport raised its fee to £6 for a 10-minute stay, with additional charges for longer stays.

Sun Travel has contacted Luton Airport for comment.



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