In today’s hostile environment for airlines the most profitable part of their entire operation is often the selling of frequent flyer miles. Companies, such as credit card issuers, prepay for hundreds of millions of dollars worth of frequent flyer miles to offer as incentives to consumers. AMEX kept Delta afloat during their recent trip to bankruptcy court buy prebuying billions of Delta Skymiles in order to keep the airline, and by extension the Delta AMEX, alive.
Recently a scary trend has been the introduction of the fuel surcharge to award tickets. This is a completely arbitrary charge that is labeled as a tax on on a mileage ticket. Now, there are some real taxes for international award tickets, but they are minimal. The fuel surcharge (which may labeled as “YQ” under taxes) on the other hand can add anywhere from a somewhat palatable $50 to an outrageous $500 to the cost of what is advertised as a free ticket. How this is all legal is beyond me, but I’ll leave that one up to the lawyers out there to take on. In the meantime I have compiled a list of airlines that charge a fuel surcharge when redeeming for award tickets on their own metal (i.e. Using Air France miles to book travel on an Air France airplane).
To make things far more confusing, some airlines only charge a fuel surcharge on award tickets for travel on their own metal, but not for redeeming for a partner award. For example Air Canada charges a fuel surcharge when redeeming for travel on Air Canada, but not for redeeming Air Canada miles for travel on Star Alliance partner Singapore Airlines, even though if you redeem Singapore Airlines miles for travel on Singapore Airlines you will be hit for a fuel surcharge! Continental Airlines doesn’t charge a fuel surcharge when redeeming Continental miles for travel on Continental or SkyTeam partner Air France, however Air France does charge a fuel surcharge when redeeming Air France miles for travel on Air France and they even have the blatant chutzpah to charge a fuel surcharge when redeeming Air France miles for travel on Continental, even though Continental themselves has no fuel surcharge!
Due to research required that is far beyond the scope of this article, what is listed below is just whether each airline charges a fuel surcharge for travel on their own metal. The amount of the surcharge can vary wildly depending on the airline, origination country, routing, etc. Travel on partner airline can vary depending on which miles you are using and which partner you are flying on, and would take much exhaustive research to figure out. However, this much I can tell you: The rule of thumb is airlines that don’t charge a fuel surcharge for redeeming miles for travel on their own metal also don’t charge a fuel surcharge for redeeming miles for travel on partner airlines, even if the partner charges a fuel surcharge. There is no set rule however for airlines that charge a fuel surcharge for redeeming miles for travel on their own metal, they may or may not charge a fuel surcharge for travel on partner airlines, and incredibly it has absolutely nothing to do with whether the partner airline charges a fuel surcharge.
Hopefully that was somewhat clear and understandable!!!
US-based Airlines that do not charge a fuel surcharge for award redemptions when flying on their own metal:
AA (OneWorld, Starwood transfer partner @ 20,000:25,000)
Alaska (Multiple partners, Starwood transfer partner @ 20,000:25,000)
Continental (SkyTeam, Starwood transfer partner @ 20,000:20,000 with direct deposit)
Delta (SkyTeam, Starwood transfer partner @ 20,000:25,000)
Important: Delta has recently started charging a fuel surcharge for award travel on Delta metal and on select partners for flights that originate in Europe! To see how this works for yourself search for a RT award ticket from JFK-CDG-JFK which has $77 in taxes, whereas a RT award ticket from CDG-JFK-CDG has $403 in “taxes” which includes a fuel surcharge of about $325 RT)
Northwest (SkyTeam, Starwood transfer partner @ 20,000:25,000)
United (Star Alliance, Starwood transfer partner @ 20,000:20,000 with direct deposit)
USAirways (Star Alliance, Starwood transfer partner @ 20,000:25,000)
International based Airlines that do not charge a fuel surcharge for award redemptions when flying on their own metal:
Air China (Star Alliance, Starwood transfer partner @ 20,000:25,000)
Alitalia (SkyTeam, Starwood transfer partner @ 20,000:25,000)
Emirates (Multiple partners, Starwood transfer partner @ 20,000:25,000)
LAN (OneWorld, Starwood transfer partner @ 20,000:50,000)
SAS (Star Alliance, No Starwood transfer, Diners club transfer @ 2:1)
International based Airlines that charge a fuel surcharge for award redemptions when flying on their own metal:
Air Canada (Star Alliance, Starwood transfer partner @ 20,000:25,000)
Air France/Flying Blue (SkyTeam, Starwood transfer partner @ 20,000:25,000)
Air New Zealand (Star Alliance, Starwood transfer partner @ 20,020:385)
Asiana (Star Alliance, Starwood transfer partner @ 20,000:25,000)
ANA/All Nippon (Star Alliance, Starwood transfer partner @ 20,000:25,000)
British Airways (OneWorld, Starwood transfer partner @ 20,000:25,000)
Cathay Pacific (OneWorld, Starwood transfer partner @ 20,000:25,000)
El Al (Multiple partners, AMEX transfer partner @ 1,050:15, Starwood transfer via direct deposit)
JAL/Japan Airways (OneWorld, Starwood transfer partner @ 20,000:25,000)
KLM/Flying Blue (SkyTeam, Starwood transfer partner @ 20,000:25,000)
Lufthansa (Star Alliance, Starwood transfer partner @ 20,000:25,000)
Qantas (OneWorld, Starwood transfer partner @ 20,000:25,000)
Singapore (Star Alliance, Starwood transfer partner @ 20,000:20,000 with direct deposit)
Swiss (Star Alliance, No Starwood transfer, AMEX UK transfer @ 1:1)
Thai (Star Alliance, Starwood transfer partner @ 20,000:25,000)
Virgin Atlantic (Multiple partners, Starwood transfer partner @ 20,000:25,000)
So, here’s the million dollar question: Why haven’t the fee-happy US airlines added a fuel surcharge to award tickets yet? Is it because of legal fears of advertising free tickets and then charging for them? Is it the fear of killing the the goose that lays golden eggs? As you saw, Delta is now charging a fuel surcharge for award flights from Europe, perhaps they are now testing the waters…
©2008 Dansdeals.com Research.
Please do not post this entire article on any other website without explicit prior permission. Thank You!