Strategies for evading fuel surcharges when using points and miles

Fuel surcharges — sometimes referred to as carrier-imposed surcharges or YQ surcharges — are a crucial consideration for those passionate about award travel. These additional fees can turn an award flight into a significant expense, adding hundreds (or even thousands) of dollars to the miles you’ve redeemed.

In certain instances, fuel surcharges can be so exorbitant that they rival or surpass the cost of an economy-class ticket.

Fuel surcharges don't necessarily correlate with fuel prices. Rather, these charges often encompass a variety of extra fees that airlines apply to their tickets, leading some airlines to label them as "carrier-imposed surcharges" to indicate their minimal connection to oil prices.

These surcharges differ depending on the route, travel direction, operating airline, and loyalty program. This guide will explore which loyalty programs add fuel surcharges to award tickets and provide some tactics for avoiding these fees.

Airline programs that waive fuel surcharges

Several programs do not charge fuel surcharges on any awards, including both their own flights and those of partner airlines. These programs include:

• JetBlue TrueBlue
• Southwest Rapid Rewards
• Spirit Airlines Free Spirit
• Air Canada Aeroplan
• Avianca LifeMiles
• United MileagePlus

Airline programs that impose fuel surcharges on some or all award flights

Here’s a rundown of prominent airline programs that charge fuel surcharges on select award tickets.

• Alaska Airlines Mileage Plan (applies to British Airways and Icelandair flights only)
• ANA Mileage Club (on flights by Air Dolomiti, Austrian Airlines, Brussels Airlines, Eurowings, EgyptAir, Lufthansa, and Swiss)
• American Airlines AAdvantage (for British Airways and Iberia flights)
• British Airways Executive Club (surcharges apply on British Airways flights, but you can lower them by using more Avios)
• Delta SkyMiles (for flights operated by Delta, Air France-KLM, and Virgin Atlantic departing from Europe, along with many SkyTeam airlines such as Air Europa, China Southern, China Eastern, and Saudia)
• Singapore Airlines KrisFlyer (for all airlines except Singapore Airlines)
• Air France-KLM Flying Blue (most awards, excluding Delta and Aeromexico)
• Virgin Atlantic Flying Club (substantial surcharges for Virgin Atlantic and Delta flights, lower surcharges for Air France-KLM)
• Emirates Skywards (significant surcharges across all cabins on Emirates flights)

Strategies for evading fuel surcharges

Whether or not you incur a fuel surcharge depends on several factors, such as the airline, the loyalty program you use, and your travel route. Fortunately, there are multiple strategies to sidestep hefty carrier-imposed fees when booking an award ticket. Here are some straightforward methods to consider.

Explore the various types of Avios

Even if you opt for British Airways' Reward Flight Saver, it’s wise to check out other airlines that utilize Avios — including Iberia, Aer Lingus, Finnair, and Qatar Airways — before making a redemption.

Each type of Avios has its own advantages and disadvantages, featuring sweet spots that are exclusive to each program. The best part is that you can transfer Avios between accounts for free, which can help you optimize the value of each program's Avios currency.

Maximize rewards through transferable points programs

Many prominent rewards programs offer valuable opportunities to transfer points to airline loyalty 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 greatest advantage of these programs is their flexibility. Specifically, you can transfer rewards to a loyalty program that allows you to book awards with minimal or no fuel surcharges.

Look for routes, origins, and layovers with reduced surcharges

Many destinations offer award options that do not include fuel surcharges. Furthermore, certain departure, arrival, and layover airports may help unlock lower fees.

While it's important to travel to your desired destination, it can sometimes be beneficial to reposition to a neighboring country or choose a different airport for transit to reduce the fees associated with your award. Essentially, if you're faced with two similar options, choose the one with the lower fees.

Additionally, if you're embarking on a long-haul flight from Europe, such as returning to the U.S., you can avoid the Air Passenger Duty charge by starting your journey outside the United Kingdom.

Fly with an airline that imposes low or no fuel surcharges

Even when a program does apply fuel surcharges, the amount can vary significantly based on the airline operating the flights.

If you find that a desired flight has high fuel surcharges with one loyalty program, check the fees through partner airlines. If you have transferable rewards from your credit card, it's wise to compare the costs of your award itinerary before moving any points.

Opt for a credit card that offers reimbursement for travel expenses

Certain credit cards, such as the Capital One Venture Rewards Credit Card and the Capital One Venture X Rewards Credit Card, allow you to use miles for travel costs charged to your card.

If you find yourself paying fuel surcharges on an award ticket, you can utilize the miles accumulated from these cards to offset the costs, lowering your out-of-pocket expenses.

Other cards provide travel credits, like the Chase Sapphire Reserve® which offers a $300 annual credit for travel-related purchases.

When flying with British Airways, the British Airways Visa Signature® Card can help you save up to $600 each year on award taxes and fees for BA flights. By using this card to pay your award ticket taxes and fees, you can receive a $100 statement credit for economy tickets or a $200 credit for business and first-class tickets, up to three times a year.

Redeem reward points for airfare directly

Numerous transferable currencies enable you to redeem points directly for paid tickets via their travel portals. This lets you book flights without fuel surcharges (or where the surcharge is already included in the price) while also earning frequent flyer rewards.

Using rewards to book flights via a transferable currency's travel portal may not yield the best redemption value. Nevertheless, this approach can be beneficial if you're looking to reduce the out-of-pocket expenses for your award travel—especially when your itinerary requires flying with an airline that charges fuel surcharges.

In general, avoiding annoying surcharges can be challenging. However, with some flexibility in your plans and careful planning, you can save money while maximizing your points and miles.