British Airways Gets Sued For Outrageous Fuel Surcharges

Nov 11, 2013

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

One of the most frequent complaints lodged against British Airways by frequent flyers is the fact that the carrier imposes ridiculously high surcharges on tickets – both paid and award – that end up driving up airfares and especially awards to prohibitively expensive prices. Well, apparently one group of four flyers was fed up and filed a lawsuit against British Airways claiming that these surcharges are unfair and not based, as BA claims, on the price of fuel.

British Airways fought to have the lawsuit dismissed, but on Friday, US District Judge Raymond Dearie in Brooklyn ruled that the plaintiffs, who are members of BA’s Executive Club frequent flyer program, had sufficient cause to sue and that the surcharges were not substantively based on fuel prices. In fact, in his decision, Dearie wrote that the rise in surcharges in the five-year period from 2007-2012 did not appear to be directly related to changes in fuel prices at all, especially since the airline admits that it doesn’t use fuel surcharges as a hedge against fluctuations. Score one for the consumer.

According to the suit, the plaintiffs claimed that British Airways unfairly added hundreds or thousands of dollars to award tickets as a means to boost revenue and compensate for “free” tickets. One piece of evidence was the fact that one flyer paid more in surcharges on a first class award than an economy ticket would have cost if purchased ($854 to be exact). One of the other plaintiffs booked two roundtrip economy award tickets and paid $1,437 in extra fees and charges, the majority of which were fuel surcharges.

British Airways Avios just got even more useful.
Will this be the end of pesky BA fuel surcharges?

British Airways tried to argue that the complaint wasn’t valid based on the deregulation of the Airline Deregulation Act, but the judge dismissed that

If you want to read the whole decision for yourself, you can find it here: British Airways Lawsuit Decision

So we’ll see how this pans out – it would be a real coup if those outrageous fuel surcharges on British Airways – and the ones that American also charges on flights into and out of Heathrow both on its own flights and on partner BA’s – were brought into line with those charged by United and Delta, which are closer to $150-$300. Even better would be if that forced Virgin Atlantic to lower its fuel surcharges as well so that flying award tickets to/from London once again became reasonable.

However, on the other side of that equation, I suspect that if fuel surcharges are cut down to size, we might see British Airways join the devaluation club – of which United and Delta became charter members this past week – and raise the mileage requirements on awards across the board, making those distance-based gems like high-priced short-hauls much more expensive.

All in all, I think flyers are stuck between a rock and a hard place. We don’t want to pay those exorbitant and seemingly irrational fuel surcharges, but if we get our way with those, I suspect we’ll have to start using a lot more miles on BA and possibly American redemptions. Bottom line is, though this might be a battle won for consumers, chances are we’ll end up paying for it in the long term.

For more information, check out my post on Which Airlines Have the Highest Fuel Surcharges.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.