Monarch will scrap credit card charges for flight and holiday bookings from December 15.
The group said the fee, currently up to 3% of the transaction price, will be ditched for all bookings made through its own websites or UK-based contact centres.
Based on the average booking value of a holiday, this will save a family of four £40-60.
"This customer friendly move puts Monarch in an industry leading position, with many other operators still charging customers who book using their credit card," it said.
"Customers can also book using PayPal and benefit from the financial protection provided by credit cards and PayPal for flight bookings."
Chief commercial officer Ian Chambers said:~ "Going to 0% for credit card bookings means that our customers can get the best value from their flight and holiday bookings – and benefit from the protection that credit cards offer, without having to pay extra for it."
