Recently I checked if I could use frequent flyer miles for a Reward ticket.
I’m well aware that certain taxes will have to be paid by the traveler and I accept the logic for charging some specific passenger related (external) costs.
However, when I look at the break down of taxes pertaining to a Flying Blue (KLM) Reward ticket I can only shake my head in disbelief.
The value of the ticket is 4,138, which includes a total of 1,482 for a long list of charges, not covered by the Reward. It is impossible to tell how these charges are calculated, but the biggest one is called “Fuel surcharge” at 1,220 – equal to 30% of the ticket value!
This doesn’t appear fair to me, the airline’s costs for fuel will not increase by 1,220 because of me using a Reward ticket. The airline could as well start excluding costs for labor, head office, rental costs, insurance and whatever. Fuel surcharge is a scam in any case, because the cost should be included in the regular ticket price, but regarding Reward tickets, this charge is like adding insult to injury.
Or the airlines could plan like this: We have budgeted a 10% profit this year, which means that 90% of our turnover consists of costs. Therefore we will charge the frequent flyer 90% of the value of the ticket. But there is a problem also with this sceme: the airline is probably not making any profit this year, so they would have to charge the full value of the ticket anyway. And as they probably are losing money, you could end up paying more for the Reward ticket than for just buying a regular one?
In my case, I would get a 64% discount on the ticket, but somehow I don’t feel particularly rewarded.
(I decided to pay the full price instead, which had its complications also, as you can see from my previous post.)