Qatar Airways raises cash surcharges on award seat redemptions

The airline has increased the surcharges it imposes on redemptions for its operated flights across all classes without prior notice.

Previously, the airline charged minimal surcharges (additional cash costs separate from mandatory airport fees and government taxes), but these "redemption fees" have now risen.

Qatar Airways has upped its redemption fee surcharge

This redemption fee can be paid through any program that passes these costs to its members, including Qatar Airways Privilege Club and British Airways Executive Club. In contrast, the American Airlines AAdvantage and Alaska Airlines Mileage Plan programs do not have these surcharges, resulting in lower cash expenses when booking with American or Alaska. However, these programs typically offer less Qatar Airways business-class availability compared to the Avios programs.

Over the weekend, Qatar Airways announced significantly higher redemption fee increases, adding several hundred dollars per leg, which raised concerns. However, the airline promptly adjusted these fees to more manageable levels, admitting that the initial charges were "higher than intended," as reported by Head for Points.

While the airline asserts that fees for short- and medium-haul flights have decreased, checks by TPG indicate that all routes from the U.S. and Europe have seen varying increases. Business-class fees have risen more sharply, whereas economy redemption fees have only experienced minor hikes.

Below are the previous redemption fees for popular routes, now updated to reflect the new one-way fee per person:

What does this imply for travelers?

Rising points and miles required for flight bookings, along with associated fees, taxes, and surcharges—commonly referred to as a "devaluation"—are always unwelcome but are a harsh reality within the loyalty industry. Such devaluations, particularly when implemented without warning, are especially frustrating as they prevent members from redeeming their points at prior rates and erode trust in programs that depend on member loyalty.

The initial drastic increases in redemption fees were concerning. However, the adjusted fees represent only a modest rise, and since there are no changes to the Avios needed through Qatar Airways Privilege Club or British Airways Executive Club, they still offer good value.

Considering that other programs charge over $1,000 in carrier-imposed surcharges for one-way flights to Europe, paying 70,000 Avios plus $236.55 in fees, taxes, and surcharges (an increase of about $135) for a 12-hour flight in Qatar Airways' award-winning Qsuite business class remains an excellent value for such a premium offering. Furthermore, it continues to be a fantastic way to utilize transferable credit card points since Avios partners with all major currencies.

How to accumulate Avios

Qatar Airways Privilege Club serves as a transfer partner for American Express Membership Rewards and Citi ThankYou Rewards.

You can also transfer Avios between British Airways Executive Club, Iberia Plus, and Aer Lingus AerClub at a 1:1 ratio in either direction.

The following credit cards currently provide generous welcome bonuses that can be easily converted into Avios:

• American Express® Gold Card: Earn 60,000 bonus points after spending $6,000 in the first six months of card membership. Additionally, receive 20% back in statement credits on eligible restaurant purchases (up to $100) within the first six months. Terms apply.
• The Platinum Card® from American Express: Earn 80,000 Membership Rewards points after spending $8,000 in the first six months. Check for a potentially higher welcome offer through CardMatch (subject to change). Terms apply.
• Capital One Venture Rewards Credit Card: Earn 75,000 bonus miles after spending $4,000 within the first three months from account opening.
• Capital One Venture X Rewards Credit Card: Earn 75,000 bonus miles after spending $4,000 within the first three months from account opening.
• Chase Sapphire Preferred® Card: Earn 60,000 bonus points after spending $4,000 in the first three months, plus a $300 statement credit on Chase Travel℠ purchases within the first year.
• Chase Sapphire Reserve®: Earn 60,000 bonus points after spending $4,000 in the first three months from account opening.

In summary

While the unexpected increase in Qatar Airways' redemption fees is disappointing, it is relatively mild compared to the significant devaluations seen in other programs in 2024. The Avios needed through Qatar Airways Privilege Club and British Airways Executive Club still offer great value, making these programs excellent options for redeeming credit card points.

Although availability can be found through American Airlines AAdvantage or Alaska Airlines Mileage Plan programs without the redemption fee surcharge, it's wise to explore all options, including Qatar Airways Privilege Club and British Airways Executive Club, before making Avios bookings.