Several days ago there was an important story that for some reason didn’t get a lot of coverage. OMAAT blog has reported that Virgin Atlantic program started adding fuel surcharges to most Delta awards, before backtracking few days later. No announcement was made one way or the other, and things went back to normal (for now).
Not long ago I wrote that I’m interested in non-stop routes from Florida to Amsterdam, operated by Delta airlines. And it just so happens that Virgin Atlantic has the best rate on that particular award. Ot at least it did before they temporality added fuel surcharges. Here is what the current pricing looks like for a random date in January of 2019:
And this is how the same award flights priced out with fuel surcharges:
That’s an almost $180 difference! Multiply it four or five times if you have a family, and we are talking big bucks. Fortunately, things went back to normal just a few days later. So, is it a fluke or a harbinger of things to come? It’s tough to say. But it highlights the dangers of collecting individual miles, something I recommend you avoid, unless we are talking about a sign-up bonus.
I prefer Membership Rewards program because I don’t have to pay an annual fee for a premium Amex card, but Chase Ultimate Rewards is an overall better choice for regular families, at least in my opinion. See my comparison of the two.
On Monday I’ve mentioned that I was debating on transferring my Membership Rewards to Avios due to current 40% bonus Even though this recent development with Virgin Atlantic program has nothing to do with British Airways, the lessons still apply. Unless you have an immediate use for miles, you risk that specific currency devaluing significantly. It doesn’t even have to be a long period of time.
It’s similar to buying individual stocks, something I would never do. And if that’s the case, it’s clear that I should keep my Membership Rewards where they are now. Who knows what Avios program will look like in a few years. They may start adding all kinds of stupid fees to American Arilines awards. Why would they do that? Because they can.
Putting things in perspective
Not too long ago, Membership Rewards had a 30% transfer bonus to Virgin Atlantic. Perhaps you took advantage of it with the plan of redeeming miles on Delta flights to Europe. The problem is, you can’t book your tickets for at least few months. What if Virgin Atlantic decides to make fuel surcharges a permanent thing? You probably still made the right call.
Let’s look at what Delta program charges for this flight in January:
In order to book the same award via Virgin Atlantic program, you would have to transfer 24,000 Membership Rewards points (due to 30% bonus). So, we have 37,000 Delta miles (or 37,000 MR points)+ $5 vs. 24,000 MR points+$184. Many people value 13,000 MR points at $179, so it would essentially be a wash.
That means the disparity in award pricing is not as bad as it appears at first glance. Still, whatever you hoped to gain through taking advantage of 30% bonus would be wiped out by the nasty fuel surcharge. If you are looking to redeem Virgin Atlantic miles on domestic Delta routes, you are probably fine. Well, as long as Delta remains a Virgin Atlantic partner, which is not a guarantee.
Bottom line
Transferring flexible points to miles speculatively comes with very real risks. You are essentially at the mercy of the program. They can slap all kinds of fees on awards, raise rates without notice etc. Those who travel frequently will usually find a way to get decent value regardless. For the rest of us, that stash of miles may become just about worthless.
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Author: Leana
Leana is the founder of Miles For Family. She enjoys beach vacations and visiting her family in Europe. Originally from Belarus, Leana resides in central Florida with her husband and two children.
Thanks, didn’t know they partnered with Delta. I tried destinations from Minneapolis and flying to Edinburgh through JFK on Delta, and they did charge the $183. Glasgow is $148 through Orlando.
@Lynn It’s my understanding (and something I probably should have added to the post) is that Virgin Atlantic does add fuel surcharges to Delta flights to Great Britain. Also, when you originate in Europe, it’s the same story. This recent development was newsworthy because ALL international Delta flights started showing fuel surcharges. When you fly to other airports in Europe, you should pay only $5 in taxes for one-way flight. I just double-checked Orlando, and that’s what it shows. Can you fly anywhere else in Europe on Delta? If so, it could make sense to redeem Virgin Atlantic miles. It’s a very quirky program, but there is value to be had if you know where to look.
I thought that they just added for London, not all of Great Britain. Thanks for clarifying. Good to know that Amsterdam is only $5 from Minneapolis!
@Lynn It’s totally possible that they used to only add surcharges to Delta flights to London and this is a recent development. I would definitely be cautious with this program and burn miles on Europe/Asia flights on Delta ASAP. They may add the surcharges back tomorrow, and there isn’t a whole lot anyone could do. In general, I don’t like to hoard miles in foreign programs. I was debating on Avios MR transfer, but I think I’ll pass. Too much can go wrong.
Right, I really don’t have miles in foreign airlines, so have a tough time keeping up with all their partners and transfer options.