Ryanair told to end the 1p fare and show taxes

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Consumer watchdog, the Office of Fair Trading, said it would take "robust action" against airlines and holiday companies that did not include all taxes and "non-optional" costs such as fuel duties in their headline fares.

More here...

• Luggage charge bags record profit for Ryanair

The "no-frills" carriers have transformed Britain's aviation industry over the past decade by advertising prices for as little-as 1p or even free of charge.

However, these do not include taxes and other costs, which can add as much as £23.45 to a one-way flight.

Some other airlines such as British Airways and bmi already advertise prices as fully inclusive of taxes and fuel charges.

The OFT ruling does not apply to avoidable charges such as baggage fees and in-flight meals.

John Fingletonthe OFT's chief executive said: "Giving misleading price indications to consumers makes it very difficult for them to compare prices offered by different operators.

"It distorts consumer choice and competition and undermines consumer confidence in the market."

The Association of British Tour Operators said it would ensure all members complied with its Code of Conduct requiring them to include all unavoidable charges in prices.