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Sunday, August 17, 2008

Airlines Add Fees, Trim Frequent-Flier Benefits

Many airlines are tacking on new fees and reducing the benefits of formerly free award tickets.

On the back of a year of skyrocketing oil prices most airlines have made announcements that they will add a fuel surcharge or fee when booking award tickets.

Some are changing the structure of their frequent-flier programs so it is more expensive to buy certain award tickets and others are cutting the benefits associated with award tickets.

Earlier this summer, American Airlines added a $5 online booking fee and announced that it will increase the number of miles needed to buy certain award tickets as of Oct. 1. More recently, the airline announced additional fees for using miles to upgrade to first class from certain low-level fare classes.

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source WSJ, Sarah Nassauer

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