Airlines sit on passengers' money 

Airlines are sitting on millions of dollars worth of taxes and other charges which rightfully belong to customers.

Most passengers think non-refundable air fares mean just that if they miss the flight but One News reveals that some costs can be claimed back.

Most bargain basement tickets involve "use-it-or-lose-it" fares - miss the flight and you lose your money. But not all of it! Airlines say cheap fares are non-refundable but they don't tell you the taxes are.

David Russell from the Consumers Institute says many people simply don't know that they can claim back the extra they have paid in taxes and other government fees.

Government and airport charges can add huge amounts to long haul travel. A return flight from Auckland to Sydney with Air New Zealand incurs a passenger service charge, a movement charge, a security charge and even Australia's noise levy - that's about $100 to be claimed back if you don't fly.

"We certainly believe that the customer is entitled to a refund of those add-ons, after all, those add-ons don't belong to the airline," says Paul Yeo from the Travel Agents' Association.

And David Russell says "it's probably quite a nice little earner for them, because they would have a sum of money sitting there that would be earning interest that presumably goes into their coffers".

The budget carriers were giving nothing away when One News called to check their refunds policy, saying the whole fare is forfeited. But the major airlines were willing to cough up.

Qantas and Air New Zealand both admitted customers were entitled to a refund on the taxes paid.

However House of Travel says it's a frustrating process, sometimes involving complex forms, and even a processing fee. And the wait for refunds could be several months.