Taxes and fees can vary wildly depending on the airline, loyalty program, airport, destination, and even the cabin class you’re flying. That’s why we always look at both the number of points and the amount of cash required when comparing award flights. An award that costs fewer points isn’t necessarily the better deal.

Why Do I Have to Pay Anything on an Award Ticket?

When you redeem miles for a flight, your miles don’t necessarily cover every charge associated with that ticket. Government taxes, airport fees, and airline-imposed surcharges can be added to the award.

Those charges can differ from one award to another. We’ve booked plenty of award flights where the surcharge was very small (we love those $5.60 ones), and we’ve also found great-looking awards that came with hundreds of dollars in additional charges—especially for international business-class seats.

This matters even more when you’re booking for several people. An additional $400 might be something you’re willing to pay for one business-class ticket, but suddenly that’s $1,600 if you’re booking a family of four, and that may not be doable.

Those extra charges can add up fast on a family trip!

London Heathrow Is a Great Example

London’s Heathrow Airport is one place where we pay particular attention to taxes and fees. The United Kingdom charges an Air Passenger Duty (APD) on passengers departing from UK airports, and premium-cabin travelers pay a higher rate than economy passengers. Rates are also higher the more distance the flight covers. So booking a return flight back to the U.S. in a premium cabin can mean the APD is quite high.

And that’s before you add other applicable airport charges or any surcharges imposed by the airline. Put everything together, and that business-class award departing London can come with a surprisingly large cash bill.

One important thing to understand is that this particular UK departure tax applies when your journey begins in the UK. Flying into London from the United States does not trigger the APD. And if you’re just connecting in London on a single ticket and will be in transit in London for less than 24 hours, it doesn’t apply at all. 

The APD is one reason we sometimes look at flying into London and returning home from somewhere else in Europe. If we’re already planning to visit several countries, flying into London and returning home from Paris, Amsterdam, Madrid, or another city might fit the itinerary anyway. I wouldn’t completely rearrange a trip just to avoid a tax, but it’s certainly something I look at when I have several good options.

It Isn’t Just London

London gets a lot of attention because UK departure taxes can be so noticeable, but LHR certainly isn’t the only airport where the cash portion of an award can be higher than expected. Different countries have their own departure taxes, passenger charges, and airport fees, so the amount you pay can change depending on where your trip originates.

There’s another factor that can make an even bigger difference: airline-imposed surcharges, which aren’t government taxes at all. They’re charges imposed by the airline, and some airlines add significant surcharges to certain award tickets, particularly international premium-cabin awards.

British Airways and Virgin Atlantic are two programs we pay close attention to when it comes to looking at the cash portion of an award. Award tickets on these two airlines include taxes, fees, and carrier-imposed charges in addition to the points required and they can be quite high.

So when you see $500 or $700+ attached to an award ticket, don’t automatically assume that Heathrow or another airport is charging you all of that money. The total can be a combination of government taxes, airport charges, and airline-imposed surcharges.

The Fewest Points Isn’t Always the Best Deal

This is where I think people sometimes get too focused on finding the absolute lowest award price. Let’s say I have two options for getting to Europe in business class. One costs 60,000 miles + $600, while another costs 75,000 miles + $75.

I might happily spend the extra 15,000 miles and save $525 in cash, but someone else may be trying to conserve miles and choose the first option. Neither choice is necessarily wrong. The important thing is that we’re comparing the entire cost of the redemption, not just the number of miles.

I’ve become much more willing to spend additional points when it gets me a better flight, lower fees, or an easier itinerary. Points are there to help us travel, and I don’t think we need to win an imaginary contest for using the fewest possible points every time. Remember, you do you! But do it with an understanding of real costs.

Business Class Can Cost More in Fees

Another thing beginners don’t always realize is that moving from economy to business class can increase more than just the number of miles required. Certain government taxes are higher for premium cabins, and airline-imposed surcharges can also vary by cabin.

That’s why I wouldn’t normally fly business class if I were still traveling with young children. I don’t mind paying those extra fees, but you might.

Yes, I fly business class routinely but I only book for one or two people.

Bottom Line

We love finding great award deals, but the best redemption isn’t always the one requiring the fewest points. I look at the miles, the taxes and fees, the itinerary, the airline, the cabin, the connections, and how easily I can replace the points I’m spending.

Sometimes I’ll gladly pay a little more cash to save my points. Other times I’ll happily spend more points to keep hundreds of dollars in my pocket. That’s one of the great things about points and miles—there are often several ways to get where we want to go.

So when you find that amazing award flight, don’t stop at the big number showing how many miles it costs. Look at what comes after the plus sign. That number can make a big difference in whether you’ve actually found the redemption you want to book.