Salvation: Northwest and Delta to drop fuel surcharges

by Grant Martin on

During that whole oil debacle this past summer, airlines were levying fees left and right to recoup some of the massive losses they were incurring to pay for jet fuel. Charges included paying for checked bags, preferred seats and worst of all, heavy fuel surcharges.

The addition of fuel charges when oil was expensive made disappointing sense to most, but what really irked many frequent flyers was the inclusion of award tickets in these fees. To most, an “award” ticket booked with miles should be as free as possible — after all, we earned these miles with our cold, hard cash and time, right?

Now, as oil has returned to normal levels, many analysts (including myself) predicted that the airlines would keep the surcharges in place just because they milked some cash out of the passenger. But to our surprise, Virgin Atlantic, British Airways and many others reversed their fees and returned the fare structures to normal.

Today, Northwest and Delta followed suit. Now when booking overseas and domestic reward tickets, the $20 – >$100 fees that formerly angered so many passengers is gone. The best part of the change is that for some, I’m hearing the change is retroactive. So if you booked an award ticket in the last month or so and had to pay the fee, you can call and get your money back. This may be one of the first times ever that I have called the airlines generous.

Your mileage may vary on the return of your fees (depending on who you talk to and what your “status” is,) but it’s worth a ten minute phone call, right?

You can read the full details on Delta’s website here.

Poor Puff Diddy Daddy forced to fly with us commoners

by Scott Carmichael on

Rising fuel prices are a major pain for most of us, but you just know things are going sour when even the super-rich have to give up their private jet and travel on a commercial airline.

Puff Daddy/Diddy/P.Daddy/P.Diddy/Puffy has decided that the cost of a private jet trip from L.A. to New York is just too high, even for him ($200,000 r/t), and he will be joining us on scheduled commercial flights for the time being. So, next time you are sitting up front on American Airlines, keep your eyes open, perhaps you’ll catch some of the bling!

Instead of whining, he’s even trying to fix the situation, and has made a video clip for his “brothers and sisters in Saudi Arabia” asking for some free oil for his jet. He’s also asking us to tell the next president to lower gas prices. I’m sure that will go a long way to getting rid of these horrible fuel surcharges.

(Warning: video clip contains some strong language, and may not be suitable for younger viewers or readers at work)

Emirates chucks magazines…to save fuel

by Iva Skoch on

Interesting idea, but it honestly doesn’t make much sense to me.

Emirates has made a decision to get rid of all paper from the seat pockets on its new Airbus A380. Why? The Economist reports that they’re trying to save weight and, hence, fuel.

Don’t get me wrong. I think throwing out those silly in-flight magazines is a grand idea. However, can you seriously save significant weight by removing, say, 1000 magazines? Let’s say it’s the same weight as one passenger (after dinner.)

Does that really make a big difference?

The Economist writes that removing 2kg of paper from each of the 500 seats shaves a tonne off the plane’s flying weight. What do they mean by “2 kilos” of magazines, exactly? That’s 4 pounds. Maybe I’m missing something here, but I have never been on a flight where you find 4 lbs of reading material in the seat pocket in front of you.

What does Emirates provide for the reading pleasure of their customers? Bridal magazines?

Hedge your gasoline purchases with MyGallons

by Grant Martin on

I was JUST thinking about this on the ride in this morning when I passed the Shell station at the corner of Platt and Ellsworth when I saw regular fuel at $4.25 a gallon: “Man, I wish I could buy gas at today’s price tomorrow”.

That’s basically what oil futures are: speculators decide that they think the price of oil is going to rise, invest in futures and watch their money go through the roof. More people make money, more speculate and the price goes up. It’s the phenomenon that many economists think is leading the surge in oil prices today, beating out real market supply and demand economics and essentially crushing our transportation infrastructure.

The theory is identical to what Southwest Airlines did. Back when oil was at believable prices, that airline decided to hedge their oil purchases and lock in prices at the past rate of $51/barrel. Now that fuel is at over $140, they’re making a killing over other airlines.

Now, with gasoline at $4.25 a gallon, you can purchase as many gallons as you want at that price with MyGallons.com and watch the market fluctuate independent of your fuel consumption. If gas keeps surging to $5.00 a gallon? You’ve just saved a bunch of money. If it drops to $2.50 again? You’re out.

Based on how many gallons you buy, the service sends you a “debit” card that lets you purchase as much fuel (per gallon, not dollar) as you have stored up.

The crux of your investment is on where you think the price of the oil is going to head. If you, like many others, think that the price will keep going up, now might be a good time to buy your MyGallons card before your summer road trip.

Subscription to the MyGallons service ranges from $30-$40 per year, but if gas keeps going up that will be a drop in the bucket compared to what you could save.

Delta institutes fuel surcharges on award flights — who is next?

by Grant Martin on

One of the perks of having a frequent flyer number used to be earning enough miles for a free ticket. Free being a relative term, because we still had to pay some taxes. Domestically, this was about five dollars, while internationally this could be up to fifty or a hundred. No big deal, I always had a few empty cans to return.

Not any more on Delta. Citing fuel costs, the Atlanta-based airline is now going to charge a 25$ fuel surcharge for domestic award bookings and 50$ for international itineraries.

“But Grant,” you say, isn’t an award ticket supposed to be FREE?

Yeah, that’s what I thought too.

These sort of shenanigans are what we in the community call “devaluation of miles” and are indirectly a product of downsizing in the industry. Airlines want you to use fewer of miles, so they make them harder and more frustrating to spend. Fewer award tickets = more revenue tickets = more cash on hand.

Devaluation is another reason that many passengers in the Delta/Northwest merger are a little concerned. While both CEOs claim that our miles and status are secure, neither will profess to if they’re secure in value as well. Sure, you have 100,000 miles, but our new Deltwest airline charges 150,000 miles per award ticket. With a 200$ fuel surcharge.

Expect more of the same petty fees to show up across other carriers as they scramble to raise extra cash — my guess is that this will be picked up by the other legacies pretty quick.

Delta’s fuel surcharges go into effect August 15th, so book your award travel before then.