Airfare prices for routes previously served by travel company Thomas Cook are surging in the wake...Airfare prices for routes previously served by travel company Thomas Cook are surging in the wake of its collapse. Travellers found tickets with rival airlines like Jet2, British Airways, Ryanair, and TUI to have gone up as much as 400% since Thomas Cook abruptly stopped operations on Monday. The collapse left 600,000 people stranded around the world, and many with now-worthless bookings for future flights. Airlines responded by saying that their prices are determined by market forces. Industry analysts say that increases are the inevitable consequence of a provider collapsing. Visit Business Insider's homepage for more stories. Airlines are being accused of inflating their flight prices by as much as 400% after the collapse of UK airline Thomas Cook. Travelers booking flights since the company's collapse on Monday say that prices have soared. Thomas Cook ran dozens of flights a day, and its collapse left 600,000 stranded around the world. Customers with future bookings have found their trips cancelled, and must rebook with rival operators if they still want to travel. One traveler said on Monday that the cost of a flight with British budget airline Jet2 had almost doubled within an hour of Thomas Cook's collapse: Absolutely disgusting from @jet2tweets @Jet2Holiday within the space of an HOUR they’ve doubled the price of flights following the news of #ThomasCook collapsing. Yet another Typical greedy airline. #jet2 pic.twitter.com/3xDTlq60mn — Olivia Howat (@olivia_howat) September 23, 2019 Another said that a flight had tripped, from £47 to £145: Paid for two fights to Menorca with Barclaycard and they’ve told me to contact Thomas Cook.Tried another flight with Jet2 and £47 yesterday £145 today.How are they allowed to do this? — James Dunkerley (@dunkerley_james) September 23, 2019 A spokeswoman for Jet2.com said told Sky News: "Our pricing, as is common practice in the travel industry, is based on the principle of supply and demand." "As supply reduces, an inevitable consequence is that prices increase. However, we are looking at adding more supply (flights and seats) to help customers at this time." Read more: Passengers share vacation disasters from the Thomas Cook collapse, including a ruined $41,000 wedding and 'being held hostage' by angry staff at a Tunisian hotel Angela Mills, a vacationer, told the BBC that a flight from Glasgow, Scotland to Rhodes, Greece, was £1,000 on Tuesday, up from £280 on Sunday. She did not say which airlines she was looking at. The UK's The Sun newspaper reported that one passenger found a flight with British Airways from London to Orlando, Florida, was £1,978 after the collapse, up from £437 before. A spokesperson for British Airways told Sky News that the flight prices are based on supply and demand, and denied targeting Thomas Cook routes specifically. Read more: Roughly 600,000 travelers are stranded around the world after the British travel provider Thomas Cook declares bankruptcy The Sun also reported on a TUI airline return flight from Scotland to the Canary Islands that increased from £320 to £620. A TUI spokesman told Business Insider: "TUI uses a dynamic pricing model which means that our prices can go up or down. There are many variables which have to be taken in to account including peak dates of travel, regional airport differences and which channel our customers book through." The Sun also reported on a Ryanair flight from England to Spain that increased from £113 to £226. Business Insider has contacted Ryanair about increased flight prices. Experts say the price increases are inevitable John Strickland, an airline analyst at JLS Consulting, told the BBC: "People aren't sitting there rubbing their hands with glee. If sales come in rapidly on popular routes then prices go up." Jack Sheldon, founder of flight price website Jack's Flight Club, told the UK's Guardian newspaper that this always happens. He said: "When a particular route ceases to operate, prices do indeed increase substantially, but this generally occurs over a matter of weeks and months. I expect it will be similar in this case as the additional demand will increase prices on other carriers." Read more: The UK expects to spend £100 million flying back stranded Thomas Cook passengers, which is only £50 million less than bailing out the company Lisa Tyndall, a spokeswoman for flight comparison website Skyscanner, told the newspaper: "We typically see prices increase for key routes when an airline ceases trading, before reverting back again soon after." Travellers have been sharing how the collapse has ruined their plans, including people who had expected to fly for their weddings. Most people now looking to book new flights are those who have had their future trips ruined. Those who booked package holidays through Thomas Cook should eventually get a refund, but this is not the case for those who only booked flights through the company. The UK government is flying home the 15o,ooo British people now stuck abroad. Thomas Cook's biggest routes were places like Greece, Italy, Turkey, Spain, and the Caribbean. It also offers package holidays in the winter, which could mean that winter travel prices are also affected. Read more about the collapse of Thomas Cook: Stranded Thomas Cook customers say a single piece of paper taped to their hotel's reception is the only contact they've had from the collapsed tour operator The UK expects to spend £100 million flying back stranded Thomas Cook passengers, which is only £50 million less than bailing out the company Boris Johnson says he refused £150 million bailout for Thomas Cook because it risked 'moral hazard' for other firms Hedge funds could reap as much as $250 million from the collapse of British tour operator Thomas Cook A German subsidiary of bankrupt Thomas Cook will be kept alive with a German loan A Thomas Cook flight attendant says she only learned that the company collapsed and she lost her job on Facebook Join the conversation about this story » NOW WATCH: Will Boeing recover from the 737 Max crisis?
The UK expects to spend £100 million flying back stranded Thomas Cook passengers, which is only £50 million less than bailing out the company
The UK government rejected a £150 million deal to bail out travel company Thomas Cook, this...The UK government rejected a £150 million deal to bail out travel company Thomas Cook, this weekend. The failure of talks led to the struggling company declaring bankruptcy. As a result, UK officials are organizing return travel for 150,000 British people, which is estimated to cost around £100 million. 600,000 people are stranded around the world. The UK is chartering planes to bring the British ones home, a huge operation expected to last two weeks. UK Prime Minister Boris Johnson said the government decided not to bail out Thomas Cook because it would set a bad precedent. Visit Business Insider's homepage for more stories. The UK government expects to spend around £100 million flying back stranded Thomas Cook passengers from around the world after the travel group collapsed. The figure, which will cover a complicated series of charter flights to pick up stranded customers, is around £50 million less than Thomas Cook's last request for funds to keep the company afloat. Britain's Transport Secretary and the head of its Civil Aviation Authority both confirmed that cost of the repatriation — which will cover the 150,000 British customers of Thomas Cook left stranded — would be around £100 million. The company, a British travel company and airline, declared bankruptcy early on Monday morning, leaving around 600,000 people stranded around the world. Over the past month, the airline held a series of crisis talks with potential buyers and the UK government. Boris Johnson, the UK Prime Minister, said Monday that it asked for around £150 million in public funds. He declined the bailout, citing the high cost and warning that it could create a bad precedent. The company had looked like it might be saved through a £900 million reorganization plan with Fosun, a Chinese firm and its largest shareholder. But banks then said that the company needed an additional £200 million, which it did not secure. The company said the bailout would bring financial stability to the company. Read more: Roughly 600,000 travelers are stranded around the world after the British travel provider Thomas Cook declares bankruptcy Instead, UK officials launched Operation Matterhorn, which will involve 40 planes to pick up travellers and bring them back to Britain. It is the largest such repatriation in UK peacetime history. The government has faced criticism for not intervening. John McDonnell, the shadow chancellor in the country's Labour opposition party, said: "To just stand to one side, I just don't think that's wise." Read more: Boris Johnson says he refused £150 million bailout for Thomas Cook because it risked 'moral hazard' for other firms Manuel Cortes, the leader of Transport Salaried Staffs' Association, a union for transport workers, said that "the government had been given ample opportunity to step in and help Thomas Cook but has instead chosen ideological dogma over saving thousands of jobs," London newspaper the Evening Standard reported. Thomas Cook employs 21,000 people, and been in a bad financial state for years. Peter Fankhauser, Thomas Cook's chief executive, said on Monday, according to Reuters: "I would like to apologize to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years." The company, founded in 1891, had amassed a huge amount of debt. It also suffered from a drop in demand linked to the 2018 heatwave in Europe, and warned earlier this year that Brexit was causing customers to put off travel plans. The government will be running flights for two weeks to get travellers home, while people who booked upcoming flights and holidays through the group will likely have them cancelled. The government is also paying hotels to that Thomas Cook customers were staying in.Join the conversation about this story » NOW WATCH: Will Boeing recover from the 737 Max crisis?