A couple of weeks ago, I wrote about how fuel surcharges were increased by the airline. It is bad news for those looking to redeem Skywards miles that the airline has increased fuel surcharges again.
Fuel surcharges are imposed on tickets by airlines. The ticket cost is supposed to go toward paying for fuel.
When fuel costs increased, these surcharges were introduced as a temporary measure, but they have stayed with most airlines permanently.
The surcharges don't matter for those booking tickets with cash since they make up part of the overall fare. The base fare would decrease if fuel surcharges were to increase.
Some airlines pass on fuel surcharges when redeeming miles for award tickets. Fuel surcharges have been hiked for the second time in a couple of weeks for the Skywards program.
A one-way award ticket from Los Angeles to Dubai with taxes, fees, and carrier imposed surcharges was $181.20 a few weeks ago.
As of a couple of weeks ago, that same ticket would cost you $431.20 in taxes, fees, and carrier imposed surcharges, reflecting a further $250 in fees. I am not sure why the mileage requirements decreased by 1,000 miles.
The same ticket will cost you more than $600,000 in taxes, fees, and carrier imposed surcharges.
All awards between the United States and Dubai seem to have higher fees. A one-way business class itinerary from New York to Mumbai would cost you $560.70 in taxes, fees, and surcharges.
The ticket will cost you $794.70 in taxes, fees, and carrier imposed surcharges.
Fees on the fifth freedom flights from the United States have not increased as much as they have in the past. A one-way New York to Milan flight in business class would cost you 69.80 in taxes, fees, and carrier imposed surcharges, compared to around 40 before.
The same ticket will cost you $87.70 in taxes, fees, and carrier imposed surcharges. That is not as bad.
Skywards is a useful frequent flyer program because it has access to first class award tickets from Emirates, which are blocked through many partner programs.
The program was getting more compelling. The fuel surcharge was lowered by the airline in May 2020. The reversal of that trend is bad news for redemptions.
It's one thing if this were the only negative change, but just a few weeks ago the cost of one-way business class award tickets was increased. Skywards miles are looking less attractive when you combine higher fees on award tickets.
I know that the increase in oil prices is costing airlines a lot of money. Skywards miles disproportionately impact award passengers because other airlines don't pass on fuel surcharges on award tickets.
Fuel surcharges have been increased for the second time in a couple of weeks. This isn't huge for flights paid with cash, but it is important for those who redeem miles. You can expect to pay a minimum of $430+ in additional fees for business and first class on flights from the United States to destinations beyond.
I hope that oil prices go down again, and that these increased fees don't stick around in the long run.
What do you think about the fuel surcharge?
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