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For many people, the most aggravating travel fees are out-of-pocket fees charged on frequent-flyer-mile award tickets. At least that’s my impression from reading the comments on this New York Times article I was quoted in. Huge government taxes and fuel surcharges can make what should be a free ticket cost hundreds of dollars per person. People were furious about paying $600 for a “free” economy ticket.
And why wouldn’t they be? Most people think award miles get you a free ticket like they used to. When a phone agent tells them their two-person award will cost miles plus $3,600–yes, this really happened to a client of mine–they think the airline has changed the rules in the middle of the game.
Luckily avoiding these aggravating fees comes down to two simple tips:
1. Do not depart London, especially not in a premium cabin.
The reason is that the UK imposes a huge Air Passenger Duty on all departing passengers, and it’s even bigger on business class passengers–over $210 to the USA.
If you want to go to London and Paris on the same trip, fly into London and out of Paris. That award in business class is 100,000 American Airlines miles and $138. Flying into Paris and out of London in business class is 100,000 American Airlines miles and $284. $150 more!
This does not mean you cannot connect through London. Connecting through London incurs an approximately $54 Passenger Service Charge, but not the $210 Air Passenger Duty. Connecting through London may not be ideal, but it will not break the bank.
And your connection in London can be up to 24 hours before the Air Passenger Duty kicks in.
So avoid departing London to save yourself a couple hundred bucks per person. Avoid routing through London if you can, but stays of under 24 hours incur manageable taxes.
2. Use frequent-flyer miles on award partners who do not charge fuel surcharges.
United miles and US Airways miles are great because they don’t collect fuel surcharges on any awards. American Airlines collects surcharges on British Airways flights. Delta collects surcharges on a ton of its partners. See the list of Delta surcharges I’ve compiled.
If you use your American Airlines miles on a roundtrip to Europe with British Airways, you’ll pay $684 in taxes and fuel surcharges in economy class on top of the miles. That’s nearly $700 for a “free” ticket in economy!
If you use American miles on airberlin, Finnair, or American itself, you will pay $100 or so in taxes and no fuel surcharges. (Just remember to avoid departing London.)
So far, I’ve talked about using American Airlines miles on British Airways flights. You also should be careful using British Airways Avios for trips to Europe.
If you use British Airways miles for a transatlantic flight, you’ll pay at least $800 roundtrip in fuel surcharges if you fly most of its partners. The two big exceptions are Aer Lingus or airberlin. Use your Avios on these partners for huge savings.
Or just use your Avios for flights within the US. If you use Avios to fly American Airlines from Los Angeles to Hawaii, you’ll pay only $5 in taxes.
Finally, there’s the case of using Delta miles to Asia. If you use Delta miles to fly China Southern to Asia, you’ll see fuel surcharges of about $330 per passenger roundtrip. Use the same miles to fly to the same place in Asia on Korean Air, and you pay no surcharges, just government taxes.
Recap
There’s nothing worse than paying hundreds of dollars for what should be a “free” award ticket. Luckily, there are two simple ways to save yourself the money and aggravation: don’t depart London on awards and make sure you fly on airline partners that don’t collect fuel surcharges.
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Do Singapore and Air Canada collect these surcharges when booking United awards within North America?
Congrats on being in NYT. You run a great blog!
Thanks! You’re a great and loyal commenter.
This is really good advice! This actually gets to the heart of why the British Airways companion ticket is not that useful. You have to pay fuel surcharges on both tickets so the tickets are very very far from free.
Nowhere in “companion certificate” is the word “free” mentioned, though.
The far larger problem with it, IMO, is that it requires everything be on BA metal. For Europe this means a fairly reasonable Avios cost, but only 6-7 hours in real F or J and for more interesting destinations (say CPT or HKG), you’re going to pay so far out the butt in Avios cost that you’re basically getting the same price per person as if you just booked it with AA/UA/US miles.
When you say “Just remember to avoid departing London”, you mean any British airport or just London only?
Any UK airport
Good idea, but big challenge is to find decent premium cabin award availability out of Paris.
True, but as Scott mentioned before, to gain the most out of award travel, one needs to be flexible with dates and routings. Geneva, Munich, Frankfurt, Zurich, and Lisbon are not that far from Paris, have plenty of connecting flights, and usually much better premium availability.
I’m aware of those, except in some cases, like flying from Asia, good luck getting availability in good biz class to any of those cities. And what if I want to go specifically to the London or Ireland area? I’d have to pay extra for connecting flights.
Pairs and London work great because Thai has pretty good first class availability on 747 or A380, and if you’re doing the creative RTW routing using US or UA miles, it costs very little extra to fly first vs. business.
I may be dense, but what if your destination is the UK? Would the best approach be to use London as a stopover so that you return from Europe via another country (e.g. Paris)? Or will they still ding you with the APD for the flight between LHR and CDG (for example)?
It would be much smaller that way.
Can you elaborate on how to use the Avios search tool to book on AirBerlin? I’m trying to find LAX-Berlin or SFO-Berlin options but it seems like a shot in the dark and is very glitchy
Search for the airberlin space on aa.com. Then when you find it, search the same dates on ba.com
What comments on landing / take-off charges for Australian gateway cities, e.g. Melbourne, Brisbane and Sydney ???
Many thanks for a great site.
With respect to fees, I have no comments. I flew into Sydney and out of Melbourne. I liked both airports equally.
Scott —
Is there any way to get to London but not flying into LHR? Maybe Gatwick or Luhon? Is the $210 Air Passenger Duty all airports in London? If so, your idea of into LHR, out of CDG is an excellent strategy…. I am flying to DUB tomorrow and interestingly the itinerary is DUB-LHR-SFO-DEN on the way home (it is my second mileage run of six planned in 2013). Would UA pay the $210 Air Passenger Duty on my flight or am I considered in transit from DUB so no fees are due?
Steve
You can fly INTO London without the Air Passenger Duty. That is assessed to passengers leaving. The Air Passenger Duty is included in your ticket already, so if you’ve already paid, don’t worry who will pay it.
Scott,
You’ve had some great trips, how about your thoughts on the ultimate RTW using Delta miles. Not necessarily specifics here, but, a feel for what could be done. Perhaps you’ve got a link already of someone who’s done this. I would think it would be a great thread.
Maybe hitting as many ‘bucket list’ type sites in the process: for me include The Great Wall, Machu Pichu, etc. or at least getting close enough someone could integrate another resource to achieve the highlights not close to the acceptable airports using Skymiles.
Care to put your considerable skills to that sort of challenge in what should be attainable?
Second question, do you see Skymiles tanking any time soon?
[…] on American Airlines, fuel-surcharge avoidance, tax avoidance, when to book, specific examples of Aggravating Award Travel Fees and How to Avoid Them, and much […]
[…] on American Airlines, fuel-surcharge avoidance, tax avoidance, when to book, specific examples of Aggravating Award Travel Fees and How to Avoid Them, and much […]
I want to book a flight from SFO–>DEL using AA miles in Jan 2014.
The AA website is not showing me any flights using Cathay. The only options I see use BA through LHR and hence has huge surcharges. How can I avoid this? How do I make the AA search engine show Cathay availability?
The AA website doesn’t show Cathay availability. You’ll need to search it on ba.com or another site. Unfortunately you can’t fly SFO-DEL through Asia with AA miles on one award. It will price as two awards. See https://milevalu.wpengine.com/the-five-cardinal-rules-of-american-airlines-awards/
Are you sure that flying to LHR on AA aircraft doesn’t incur fuel surcharges? I understood that on common routes (AA & BA), there is some sort of agreement about that.
I am sure that flying AA aircraft to LHR on an AA award has no surcharges, but on a BA award does have surcharges.
I am flying to Barcelona from los Angeles with my husband in October using our “free” mileage and while booking the flight today I was shock to find out that we must paid close to $700×2=$1,400 Taxes fees etc to return back home to LA. I would love to flight back from Spain, France or Italia but all flights are connecting in the UK. I cant find any direct flight from the mainland and so far all of them must stop in London. What a sneaky way to rip us off. Is there a way to find flights directly from any of those nations while avoiding the UK huge departing taxes. At the end is almost as buying a round trip ticket to Europe. Nothing FREE at all. TIA
Most of that is not UK departure taxes but fuel surcharges. You may want to contact my Award Booking Service at milevalue.com/award-booking-service to see if we can find you an award that doesn’t have those fuel surcharges.
I sympathise completely. I need to go to the UK and Greece. I have gone through many schedule contortions to avoid the excessive BA taxes. It’s impossible and almost seems they have a program to counteract your every move. I’m retired now so will not be collecting many miles. I liked AA but their association would make me use another airline.
Certainly AA miles are not the best to Europe. Try United miles. United never collects fuel surcharges on awards.
[…] The roundtrip award for two weeks in London this summer is 60,000 miles + $183.50. (Don’t forget that London has huge departure taxes that you want to avoid. More here.) […]