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Delta institutes fuel surcharges on award flights -- who is next?
One of the perks of having a frequent flyer number used to be earning enough miles for a free ticket. Free being a relative term, because we still had to pay some taxes. Domestically, this was about five dollars, while internationally this could be up to fifty or a hundred. No big deal, I always had a few empty cans to return.Not any more on Delta. Citing fuel costs, the Atlanta-based airline is now going to charge a 25$ fuel surcharge for domestic award bookings and 50$ for international itineraries.
"But Grant," you say, isn't an award ticket supposed to be FREE?
Yeah, that's what I thought too.
These sort of shenanigans are what we in the community call "devaluation of miles" and are indirectly a product of downsizing in the industry. Airlines want you to use fewer of miles, so they make them harder and more frustrating to spend. Fewer award tickets = more revenue tickets = more cash on hand.
Devaluation is another reason that many passengers in the Delta/Northwest merger are a little concerned. While both CEOs claim that our miles and status are secure, neither will profess to if they're secure in value as well. Sure, you have 100,000 miles, but our new Deltwest airline charges 150,000 miles per award ticket. With a 200$ fuel surcharge.
Expect more of the same petty fees to show up across other carriers as they scramble to raise extra cash -- my guess is that this will be picked up by the other legacies pretty quick.
Delta's fuel surcharges go into effect August 15th, so book your award travel before then.
Reader Comments (Page 1 of 1)
dfwtxcowboy Jun 27th 2008 5:20PM
This post is ludicrous, and it's about time Americans realize that there is no such thing as "free." I am a school teacher and have worked in the travel industry as a reservation agent, hotel front desk agent, hotel manager and hotel sales and catering manager.
I am truly sick and tired of the belly aching that goes on in the travel industry. Well get ready...you're about to have to pay for your airfare, and it's about blasted time!!!
No one realizes that it airlines have to pay through the nose to land at any airport. No this isn't the "airport fees" you pay for on your ticket. That's levied by each and every city that owns an airport in order to keep the airport operating! To land on the island of Oahu, Hawaii, Airlines must pay rental on the terminal, pay for landing on the runway to the tune of about 50,000.00 each month. Then they have to pay for the maintenance of each aircraft, the pay levied by unions for employing pilots, mechanics, flight attendants, and baggage handlers, ticket agents, and gate agents....for one flight! We won't mention the cost of catering.
"Back in the day" when flying was classy, you paid for all of that in your ticket. If you want to see what that same ticket costs...try flying a contracted airlines. That 5,000.00 coach fair to Hononlulu, Hawaii is actually about 15,000.00...but then again, you don't have to pay for snacks, meals, and liquour.
America is about to loose several airlines (according to my sources: Midwest Express, United, and USAir and a good bet Delta AND Northwest --- you can't make a sick person healthy by tranfering bodily fluids from a healthy person...and you can't make a cash poor airline better by merging), and it's about time the airlines stop acting like bus terminals of the 1950s and start charging passengers for what they get: transportation, meals, soft drinks, snacks....and service.
Airline miles are a good reason why the domestic cariers are in such bad shape. Whose ever heard of GIVING away service for loyalty. Loyalty won't even buy you a cup of coffee. If the US is save its airlines, we need to pay those folks for what we get when we fly! Then maybe we can really enjoy the glamour of flying the way it used to be.
Or do we still want Wal-Mart Airlines?
Brooks Jun 27th 2008 8:37PM
So, if I can summarize your lengthy post, it is unreasonable for consumers who have accrued miles, either through flight or partner programs like credit cards, to expect the airlines to live up to the terms that were promised when the flight/purchases were made?
And, further, that loyalty programs like those offered by hotels, rental car agencies, and my local deli... do not actually exist? Or are you saying that I'm taking advantage of those places, too, and that I am naive/greedy if I expect to benefit from the loyalty rewards that I was promised?
I'm a little skeptical.
james Jun 28th 2008 1:13PM
Interesting posts. I agree with both, cowboy that there is no free lunch, and Brooks that a promise is a promise. Mostly, I really think that the airline rewards programs have cost the industry more than they gained from them, and that they were a bad business decision, fostered by competition, damned if you do damned if you don't.
I first started extensive travel after the Lockerbee disaster. Pan Am was giving away virtually giving away free travel through the awards program. I took 8 international trips in the process to europe and south american at a average flight cost of $250. r/t. The airline eventually went under of course, and I still had mileage that transferred to Delta when they took over the program. Pan Am had to generate business, but in the end, it really was their undoing I think.