JetBlue and Virgin Atlantic: Increased Surcharges on Reward Tickets Return

Rising Costs of Reward Tickets

With fuel prices on the rise, many airlines have started adding surcharges on reward tickets, and this trend appears to be here to stay. The latest players in this game are JetBlue and Virgin Atlantic, making consumers more cautious than ever.

Airlines Playing with Ticket Prices

Recently, I've observed several airlines manipulating the value of reward tickets. The devaluation often occurs through increased mileage costs, flexible fare pricing, and reduced availability. Now, a new issue has emerged: surcharges.

When JetBlue first announced increased fees for checked baggage, other airlines quickly followed suit. Now, I'm worried that surcharges on reward tickets will become a common trend.

JetBlue Adds Surcharges for United Airlines Reward Flights

If you're considering using JetBlue miles for a United Airlines ticket, you might want to think twice. The airline has started implementing surcharges ranging from $200 to $260 for one-way flights, even in economy class. This significantly diminishes the value of redeeming tickets.

Once other programs like Aeroplan start adding these surcharges, consumer mileage value will plummet quickly, and that's a serious concern.

Virgin Atlantic Is Not Far Behind

Virgin Atlantic is also in the mix, raising its surcharges on reward tickets. This airline is notorious for implementing fees without prior notice. This time, the devaluation for the Flying Club has become evident with continuously rising ticket costs.

Mileage costs have begun to surge. In just a short time:

• Economy class from the U.S. to London has increased from approximately $111 to $164 one-way, a 50% rise
• Business class from the U.S. to London has jumped from about $586 to $701 one-way, a 20% increase
• Surcharges for flights to London from London can reach up to $1,000 in business class, a staggering increase in just one week.

Other Airlines Are Watching

Airlines are realizing that “free tickets” can also be quite profitable (of course, no ticket is truly free). Many others have adjusted their surcharges, including:

• Cathay Pacific has recently raised fuel surcharges across its network
• Air France-KLM has introduced new surcharges for long-haul flights
• Emirates has also been consistently increasing surcharges, including on reward tickets

The Competitive Landscape Among Airlines

British Airways has long been one of the most controversial airlines regarding surcharges. I predict they might implement extremely high new surcharges starting tomorrow, especially since Virgin Atlantic has initiated this trend.

Over the past decade, even when fuel prices have dropped, that hasn't meant airlines would lower their surcharges. My prediction is that these fees will become a familiar part of air travel, regardless of oil price fluctuations.

Conclusion

JetBlue and Virgin Atlantic have added hefty surcharges to reward tickets, and this may just be the beginning. As fuel prices continue to rise and airlines seek new revenue streams, surcharges on reward tickets will likely make a swift comeback.

In fact, if airlines realize they can charge for both miles and cash, they certainly will. Theoretically, I have many reward flights this year. Perhaps I should book as soon as possible, and you should too.