Thought I'd start a discussion about the fuel surcharge. There are a number of consumer web sites describing how misleading this is for consumers. Whether its unfair or not I don't know. The thing I don't get is.... what is it actually for? The price of oil has gone up and down in the last few years. Has the surcharge ever been decreased? Is it directly linked to the oil price?
Some people are saying that its a way for the airlines to collect extra money on reward fares but also make that money nonrefundable in the instance of cancelled tickets. Its not clear from the VS website whether you get the surcharge back if you cancel the ticket but it sounds like you don't from some of the info I read. Anyone?
I guess my point is that its not a tax and its not part of the fare. Is it directly linked to some other cost or are the airlines entitled to set it how they please?
Another weird thing. These are the actual quoted figures on dummy bookings (sorry I didn't forex these values):
Quoted taxes on revenue fare NY-LHR return flight = $203.20
Cost of reward NY-LHR return flight = $528.80
(This is entirely due to $362 fuel surcharge included in the reward fare but not the 'taxes' element of the revenue fare.)
Actual flight costs $840.00
In the UK it appears the rules are different.
Quoted taxes on revenue fare LHR-NY return flight = £277.93
Cost of reward NY-LHR return flight = £300.93
Actual flight costs £424.90.
I guess the things which stand out are:
UK taxes are way higher than USA taxes, no surprise there.
The fuel surcharge is a HUGE portion of the price of the ticket and why I'm interested in how its cost is calculated.
Whats the origin of the surcharge, perhaps some people who were flying regularly before they were introduced can tell me.
I'm not so bothered about the fact that its included in the reward fare cost. Although it devalues miles, I understand that the value of miles is something the airline can essentially do what it likes with. But its not v transparent.
Some people are saying that its a way for the airlines to collect extra money on reward fares but also make that money nonrefundable in the instance of cancelled tickets. Its not clear from the VS website whether you get the surcharge back if you cancel the ticket but it sounds like you don't from some of the info I read. Anyone?
I guess my point is that its not a tax and its not part of the fare. Is it directly linked to some other cost or are the airlines entitled to set it how they please?
Another weird thing. These are the actual quoted figures on dummy bookings (sorry I didn't forex these values):
Quoted taxes on revenue fare NY-LHR return flight = $203.20
Cost of reward NY-LHR return flight = $528.80
(This is entirely due to $362 fuel surcharge included in the reward fare but not the 'taxes' element of the revenue fare.)
Actual flight costs $840.00
In the UK it appears the rules are different.
Quoted taxes on revenue fare LHR-NY return flight = £277.93
Cost of reward NY-LHR return flight = £300.93
Actual flight costs £424.90.
I guess the things which stand out are:
UK taxes are way higher than USA taxes, no surprise there.
The fuel surcharge is a HUGE portion of the price of the ticket and why I'm interested in how its cost is calculated.
Whats the origin of the surcharge, perhaps some people who were flying regularly before they were introduced can tell me.
I'm not so bothered about the fact that its included in the reward fare cost. Although it devalues miles, I understand that the value of miles is something the airline can essentially do what it likes with. But its not v transparent.
