Prepare For More Fees From Your Airline Mile Credit Card

Frequent fliers should be preparing for nothing but fees from their free airline miles.

As a struggling airline industry looks for new ways to alleviate high fuel costs, it is becoming increasingly difficult for passengers to cash in miles and expect them to cover the cost of a ticket.

On Sept. 15, Northwest Airlines is going to impose fuel surcharges on its WorldPerks frequent flier program, including fees of $25 within North America, $50 for trans-Atlantic flights, $100 for trans-Pacific, $75 for flights within Asia and the South Pacific, and $50 for any other flight.

Delta Air Lines the carrier that’s in the process of acquiring Northwest, has already added fuel surcharges for frequent fliers. On Aug. 15, Delta imposed $25 fuel surcharges for its SkyMiles frequent flier program within the U.S. and Canada, and a $50 surcharge for international travel beyond Canada.

When Northwest announced the impending fees back in July, Chief Executive Doug Steenland said in a press release that it was “a temporary service fee to partially offset our fuel costs. As fuel comes down we will re-visit this decision.”That was two days before oil prices hit their record high of $147.27 a barrel. Fuel prices have dropped significantly since then, with oil trading at about $106 a barrel on Friday. But the industry group Air Transport Authority still expects the airlines’ fuel costs to total $61.2 billion this year, up nearly 50% from $41.2 billion in 2007.

Other airlines have added processing fees, which are paid when frequent flier redeem miles, with larger fees for reclaiming miles after canceling a flight. US Airways has added a processing fee of up to $50 for its frequent fliers, as well as fees for reissuing or redepositing miles of $150 for domestic flights and $250 for international. This should be looked at like a restocking fee as if you were trying to bring something back to a store. The airlines are doing this to make sure that you do not change your itinerary at the last minute. They hope if you know you are going to be charged that you are committed to riding that one out. Continental Airlines also charges $150 to frequent fliers who re-deposit miles from canceled flights. American Airlines has processing fees and has added upgrade fees of $30 minimum for its frequent fliers.

These are similar to the fees applied for changing flights. Delta charges fees of $75 to $150 to changes within 20 days of departure for frequent fliers, with the highest fees paid for changes made within three days. Northwest charges a $50 fee for frequent fliers who change or cancel their reservations. American Airlines also charges a $50 fee for changing reservations within 20 days, or $100 for within six days.

With all of these fees being imposed it is probably going to make the popularity of frequent flier programs less favorable. Too many fees are going to not make sense for business travelers and make them look at other means of travel or doing more video conferencing. If you must travel than make sure its with a great airline miles credit card. The best way to protect yourself is with a credit card from a bank. Banks have the best airline mile credit cards available and do impose all of the fees.

Tags: Airline Miles Credit Cards, Best Airline Miles Credit Card