Fuel surcharges — also known as carrier-imposed surcharges or YQ surcharges — are an important issue for award-travel enthusiasts. After all, these extra fees can make your award flight cost hundreds (if not thousands) of dollars in addition to your miles redeemed.
In some cases, fuel surcharges are so high that they can match or even exceed the price of an economy-class ticket.
Fuel surcharges aren't necessarily related to fuel costs. Instead, fuel surcharges often include various additional fees that airlines add to their tickets, to the point where some airlines call these surcharges "carrier-imposed surcharges" to reflect the fact they have little to do with the price of oil.
These surcharges vary based on route, direction of travel, operating carrier and loyalty program. This guide will examine which loyalty programs do and don't add fuel surcharges to award tickets and outline a few strategies to avoid paying fuel surcharges.
Airline programs that don't impose fuel surcharges
A handful of programs don't impose fuel surcharges on any awards, including on their own flights and those operated by partner airlines. These include:
- JetBlue TrueBlue
- Southwest Rapid Rewards
- Spirit Airlines Free Spirit
- Air Canada Aeroplan
- Avianca LifeMiles
- United MileagePlus
Airline programs that add fuel surcharges to some or all awards
Next, here's a list of major airline programs that impose fuel surcharges on some award flights.
- Alaska Airlines Mileage Plan (British Airways and Icelandair flights only)
- ANA Mileage Club (on flights operated by Air Dolomiti, Austrian Airlines, Brussels Airlines, Eurowings, EgyptAir, Lufthansa and Swiss)
- American Airlines AAdvantage (British Airways and Iberia flights)
- British Airways Executive Club (British Airways-operated flights, though you can reduce surcharges by paying more Avios)
- Delta SkyMiles (Delta-, Air France-KLM- and Virgin Atlantic-operated flights departing Europe, many SkyTeam carriers including Air Europa, China Southern, China Eastern and Saudia)
- Singapore Airlines KrisFlyer (all airlines except Singapore Airlines)
- Air France-KLM Flying Blue (most awards, excluding Delta and Aeromexico)
- Virgin Atlantic Flying Club (huge surcharges on flights operated by Virgin Atlantic and Delta, lesser surcharges for Air France-KLM flights)
- Emirates Skywards (large surcharges in all cabins on Emirates flights)
Tips to avoid fuel surcharges
Whether you must pay a fuel surcharge depends on various factors, including the airline you fly, the loyalty program you book through and your routing. Luckily, there are several ways to avoid hefty carrier-imposed surcharges when booking an award ticket. Here are some simple strategies to use.
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Consider all the different types of Avios
Even with British Airways' Reward Flight Saver, you may still want to consider the other airlines that use Avios — Iberia, Aer Lingus, Finnair and Qatar Airways — before redeeming.
Each type of Avios has its positives and negatives, including sweet spots unique to each program. Best of all, you can transfer Avios between accounts at no cost, which can help you maximize each program's Avios currency.
Related: 5 versions of Avios: When to use Aer Lingus, British Airways, Finnair, Iberia and Qatar Airways
Earn rewards with transferable points programs
Several major rewards programs allow lucrative transfers of points to airline programs. These programs include:
- American Express Membership Rewards
- Bilt Rewards
- Capital One miles
- Chase Ultimate Rewards
- Citi ThankYou Rewards
- Wells Fargo Rewards
- Marriott Bonvoy
The best thing about these programs is the flexibility. In particular, you can transfer rewards from these programs to a loyalty program that lets you book awards with minimal or no fuel surcharges.
Related: How (and why) you should earn transferable points
Seek out destinations, origins and transit points with lower surcharges
There are many destinations where awards don't incur fuel surcharges. Additionally, some departure, destination and transit airports may unlock lower fees.
Ultimately, it would be best to go where you want. However, it sometimes makes sense to reposition to a nearby country or transit through a different airport to minimize the fees you must pay on an award. In short, pick the one with lower fees if you're trying to decide between two otherwise equal options.
Also, remember that if you are starting a long-haul flight from Europe, such as a flight back to the United States, you can avoid an additional charge, the Air Passenger Duty, by not commencing your journey in the United Kingdom.
Related: Complete guide to taxes and fees on airline tickets
Travel on a carrier with low or no fuel surcharges
Even when a program does impose fuel surcharges, the cost can vary dramatically depending on which carrier operates the flights.
So if the flight you want has high fuel surcharges through one loyalty program, check how much the fees would be through partner airlines. Especially if you have transferable rewards from your credit card, it's best to compare the cost of your award route before transferring any rewards.
Related: How to book your first award flight using airline miles
Use a credit card that reimburses you for travel expenses
Some credit cards, including the Capital One Venture Rewards Credit Card and the Capital One Venture X Rewards Credit Card, allow you to redeem miles for travel expenses you charge to your card.
If you're stuck paying fuel surcharges on an award ticket, you can use the miles earned from these cards to cover the cost, which reduces your out-of-pocket expenses.
Other cards offer travel credits, such as the Chase Sapphire Reserve® $300 annual credit for travel purchases.
If you're flying British Airways, you can use the British Airways Visa Signature® Card to save up to $600 annually on award taxes and fees on BA flights. Pay your award ticket taxes and fees with the card, and you'll get a $100 statement credit for economy tickets or a $200 statement credit on business- and first-class tickets up to three times per year.
Related: The top credit cards with annual travel statement credits
Use reward points to pay for the airfare directly
Many transferable currencies also offer the ability to redeem rewards directly for paid tickets through their travel portals. This allows you to book flights that don't have fuel surcharges (or already include the surcharge in the price) and earn frequent flyer rewards.
Redeeming rewards to book flights through a transferable currency's travel portal usually won't offer the best redemption value. However, doing so can help if you're trying to minimize the cash cost of your award travel — especially if your travel plans force you to take an airline that imposes fuel surcharges.
Overall, it can sometimes be hard to avoid pesky surcharges. However, if your plans are flexible and you plan, you can save yourself money and maximize your points and miles.
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
