ITAA says Aer Lingus actions will push up airfares

The Irish Travel Agents Association has warned that airfares will rise because of Aer Lingus’s decision to slash the commission it pays to agents.

The ITAA has said that as many as 500 workers could lose their jobs because the state airline has reduced air fare commissions from 9% to 5% in the last 11 months.

Tony Brazil, a spokesman for the association, said agents will have to increase fares to recoup the lost income. Aer Lingus said the cuts in commissions are part of stringent cost-cutting measures aimed at providing cheaper flights for passengers.

The airline has been losing heavily in recent years because many air passengers have switched their allegiance to low-budget carriers like Ryanair.