Delta Air Lines, based in Atlanta, Georgia, the United States, has decided to charge passengers who redeem their miles for free flights a fee of at least $25. The fuel surcharge of $25, which will come into effect for award tickets booked August 15, 2008, and later, will apply to SkyMiles award travel in the United States and Canada.
For international award travel, Delta Air Lines will levy a fuel surcharge of $50 – this would include trans-Pacific and trans-Atlantic flights, as well as flights to the Caribbean, Latin America, Puerto Rico and the United States Virgin Islands.
Delta also plans, in the next 60 days, to make changes to its “multi-tiered award programme” and “other key initiatives,” a press release from the company said.
Thought the company did not give details of the planned changes to its tiered award programme, industry analysts have predicted that airlines might increase the number of miles required for frequent-flier tickets.
The announcement by Delta Air Lines comes on the heels of recent moves by other airlines to add fees for what used to be free award tickets: US Airways will begin charging a $25 to $50 as award processing fee from August 6, 2008. American Airlines will start charging a $5 processing fee for award reservations from June 21, 2008. Other fees apply if customers book awards over the phone.
Delta Air Lines operates extensively on domestic and international networks covering North America, South America, Europe, Asia, Africa, the Middle East and the Caribbean. It is the only major United States-based carrier that flies to Africa.
On April 14, 2008, Northwest Airlines, headquartered in Eagan, Minnesota, the United State, had announced that it would be merging with Delta Air Lines. If the plan for merger materialises, the new Delta would become the world’s largest carrier.
In the press release, Jeff Robertson, managing director of Delta Air Lines’ SkyMiles programme, said that “the rising cost of fuel is causing considerable financial stress to Delta’s business.”
A spokesman of Delta Air Lines was quoted by New York Times as saying on the decision to charge fuel surcharge: “The move is important to help mitigate fuel price challenges the company faces. Hopefully, we will have the opportunity to re-evaluate the surcharge if fuel prices subside.”
Prices of jet fuel have risen by 83.6% in the last year, according to the International Air Transport Association, the international industry trade group of airlines, headquartered in Montreal, Quebec, Canada.