Why Are Some International Carriers Charging a Low Fare and Tacking on a High Fuel Charge -- Frequent Fliers Beware

True at the end of the day the price is the same.... whether a carrier accurately and fairly charges you an airfare plus tax versus charging you a lower bogus base fare and tacking on a fuel surcharge.  Here are some reasons it matters.

• Travelers who think that they have socked away enough for "free" frequent flier awards and companion tickets will be surprised that after using their hard earned points they are still charged more than half of what the flight would have costed had they paid cash.   You might have bought into a frequent flier program thinking you were going to have enough mileage for two tickets to Europe say as advertised by their program .... only to find out that the surcharges make using the points cost prohibitive.   

• In countries other than the US which has laws against this deceptive practice (such surcharges have to be bundled into the base fare though airlines are US airlines are trying to get this changed), airlines can make their fares look much lower than they really are, at least in countries where they're allowed to post fares that way.

• Airlines may be able to  lower the  commissions they pay by paying commissions only on the "fare" portion of the total cost to the passenger.  

• Airlines  may be doing this so they can raise the true fares on routes where fare increases still need some sort of outside approval— if this is true it may be a legitimate reason.

It is fortunate that  the U.S. government won't let airlines feature fares that exclude fuel surcharges; the only way to find them is to click on separate "explanation" boxes.  But some third-party sites—still post fares that exclude the surcharge.

Personally I think these surcharges are a scam simple as that.  A scam that those of us who accumulate  frequent flier mileage on business trips so that we can take our families on vacations for reasonable prices need to be aware of.   You can get ripped off in particular if you transfer points to use on a foreign carrier who has such charges.   

If you try to get around a carrier's bogus upcharge on their frequent flier tickets by trying to buy  tickets through them on one of their partner airlines, they will still charge you the outrageous surcharge.  Why would they charge a fuel surcharge on another carrier?   Could it be because in fact what is really happening is they are not giving you an equal deal for your points.  While they are advertising that you can buy a ticket to Europe on their airline with say 60,000 frequent flier points (this is the typical amount charged for airlines like American, Iberia who do not charge a fuel surcharge), they are in fact charging you the points plus $400 or more some dollars not including the typical taxes ( other airlines do, of course, charge taxes on such tickets).   This means that your points have been depreciated some 50% on a typical $800 ticket versus what you would have paid on an airline that does not have the surcharge.   Sure somewhere in the fine print they tell you all this.  Nonetheless,  I find it hard to believe that some of these companies have reduced themselves to participate in such obviously deceptive practices, but it appears they do, and as the old adage taunts -- let the buyer beware.