from MarketWatch:
Delta adds fuel surcharge to frequent-flier ticketsBy Christopher Hinton, MarketWatch
NEW YORK (MarketWatch) -- Delta Air Lines Inc. said Friday that it would begin adding a fuel surcharge to passenger tickets awarded through its frequent-flier program as a way to help offset rising fuel costs.
Delta said it would charge $25 on domestic tickets and $50 on international tickets awarded through its SkyMiles program, effective Aug. 15.
Last year, the carrier had about 3.3 million award redemptions, though this year that's expected to decline as the carrier reduces its capacity after the summer-travel season.
"The price of fuel has nearly doubled in the last year, causing considerable financial stress to Delta's business," said Jeff Robertson, managing director of Delta's SkyMiles Program, in a statement. "This was a difficult but essential decision in the face of record-high fuel costs. We hope this is temporary, and should fuel prices subside from current levels we will reevaluate this surcharge."
Delta joins US Airways Group in charging customers who procure flights through frequent-flier programs. In August, US Airways begins charging $25 for domestic award-program tickets, $35 for flights to Latin America and the Caribbean and $50 for flights to Hawaii and other international destinations.
American Airlines has begun charging a $5 processing fee for flights booked through its awards program.
Charging award members for obtaining award tickets undoubtedly will become as popular among the network carriers as charging for the first piece of checked luggage.
Airlines are frantic to raise enough revenue to match a fuel bill that's up about 50% from a year ago, and that's eating into almost every carrier's cash position. The unprecedented rise in fuel prices already has helped to push about 24 smaller airlines into bankruptcy. ......(more)
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