New Charges with Frequent Flier Programs

New Charges to Redeem Frequent Flier Miles

If you are using frequent flier miles for a summer vacation, celebrate
your good timing. Soon, most major airlines will charge a fee to
redeem your frequent flier miles. This is part of a growing list of
new fees that airlines are using to offset the rising cost of fuel.

Here are some frequent flier processing fees on a per ticket basis:

* In June, American Airlines started charging $5.

* Starting August 6, US Airways will charge $25 for domestic
flights and to Canada, $35 to Mexico and the Caribbean, $50
to Hawaii and international destinations.

*Starting August 14, Delta will charge $25 for domestic flights, $50
for all other destinations.

"The airlines are having such financial difficulty and are fighting
for their survival. I don't expect the charges and changes to end
here," says Bill Hardekopf, CEO of LowCards.com. "Delta will soon
announce changes to their reward program. I wouldn't be surprised if
they increased the mileage requirements for free tickets. If one
carrier starts this, the others will quickly follow.

"Extra fees aren't the only changes that are affecting frequent
fliers. Airlines are also cutting back flights and reducing seating
capacity, which will make it harder to use your miles," says
Hardekopf. "This is a good time to shop around to find a reward card
that includes a variety of rewards, not just airline miles. There
are good reward cards available with low rates that do not charge an
annual fee such as Miles by Discover, Merrill+ Card, Capital One
No Hassle Miles Rewards, and Bank of America cards with Worldpoints."