Are “expedite” fees for award tickets refundable?

Josh Banta and his wife cashed in some of their hard-earned American Airlines miles to fly from New York to Miami for a funeral. But the tickets weren’t free; they paid $125 for the privilege of using their miles within 21 days. That’s a fee someone has yet to explain to me.

“Our flight was canceled because of thunderstorms,” explains Banta. “There were no more flights that night, and all the flights the next day were booked, and even most flights the day after that were booked. We would not have been able to get to Miami until late Saturday night, more than 48 hours later than originally scheduled.”

The Bantas would have missed the funeral, so they asked American Airlines for their miles back. The carrier obliged, but kept the $125.

And American representatives argued that the expedite fee is charged solely for the privilege of booking a flight within 21 days of travel, and so cannot be refunded, regardless of the outcome.

But I argued you cannot charge someone for the privilege of booking a flight that they are not able to honor. Bottom line, American was not able to re-book us on something even remotely near the time of our original departure. Therefore, the morally right thing for them to do is to refund the expedite fee for a service they were not able to live up to.

I made many calls to American to get this resolved, and at one point some agent offered me a partial refund of $100, which I foolishly declined on principle. I should be entitled the full amount, I thought. Now, I have spent more than $25 of my time on this and I cannot get anyone at American to honor even this partial refund request.

What is your advice for how to proceed?

Well, apart from not being able to understand why a 21-day advance-purchase ticket commands an additional $125, now I’m equally baffled by American’s refusal to refund this absurd fee.

The flight was canceled. If he’d paid American in cash for the ticket, he’d be entitled to a full refund. Why not for miles and the booking fee? After all, as a frequent flier, Banta is presumably among American’s best customers. Right?

I suggested he send a brief, polite email to someone higher up at American, explaining his request. He did.

After sending some more emails to American Airlines, I was able to get the expedite fee mostly refunded — $100 of the $125. They even emailed me back today (a Sunday) to tell me!

I strongly suspect that the reason American Airlines settled with me is because I forwarded them a copy of the email I sent to you.

You keep the industry honest. I am very, very grateful you do what you do.

I don’t know about that. I think the honest thing to do would be to not charge an “expedite” fee at all. But airlines love their ancillary revenues. Who am I to deny them?

(Photo: mxmstryo/Flickr Creative Commons)

  • Stewart Sheinfeld

    The logic AA used to charge this fee was “we are moving you ahead of other people to get you ticketed”. This may have been true when you needed to speak to a rep and get a paper ticket. In today’s world where you can do everything online by yourself there is no valid reason for this fee, the truth is the airlines should probably discount last minute awards as they would fill seats that would be empty otherwise.

  • Carver

    @Stewart

    I think its more along the line that when paper tickets were used, your paper ticket required special handling to ensure that it reached you in time. E.g. a live person had to walk it through the system.

    But you are 100 correct, today, expedite fees for electronic transactions have no justification, particular in the age of internet booking and e-tickets..

  • MVFlyer

    Josh–my condolences on your loss. And I think you did the right thing by sticking to your guns and shooting for the full $125. You requested and paid for a service that was not rendered, both with miles and cash. All should have been fully refunded. At least you got most of it back, and you can revel in the fact that you probably ate up more than $25 worth of AA’s time between your inquiries and Chris’s.

    Regarding the fee: my guess is the airlines are playing games here–they have limited, if any, free ticket availability >21 days out, and then start opening up more availability the closer to the flight date. This way, they can actually make a little money off a seat that most likely would go out empty. Pretty insidious.

    The original argument for the fee was that you had to jump the queue to get ticketed–nowadays you do all of the work. I wonder if you had contacted AA before the flight and asked them to waive the fee on humanitarian grounds since you were going to a funeral. Oh, wait, that implies humanity. Sorry–silly me. :-)

  • Lisa S

    These fees are ridiculous, but we all know that and it doesn’t appear we can do anything about them. It is a pity Southwest doesn’t fly to more places, but then maybe they would become as bad as the other airlines. I just had to deal with AA when booking an awards ticket to go to LHR because apparently their website does not support my “outdated” browser on my Apple computer. I had to call my dad, who has a new PC, to pay for the ticket because the AA website wouldn’t let me enter my credit card number. I contacted someone who assured me that AA would indeed charge me $20 if she or any other employee of AA helped me. Yet another example of the lousy customer relations (it certainly isn’t service!) AA and other airlines provide.

  • WildBill

    My wife’s grandfather is critical (and 98) and her nephew (a soldier at Ft. Drum, NY) wanted to come visit before he passes.

    I’m a Million Miler with Delta who was aggravated enough last year at Delta that I shifted a LOT of my travel to US Air (making Chairman’s level there) but my Delta status dropped to Gold. I’ve been a Platinum member since 2000, and as such my award ticket fees were waived. After finding a flight for the nephew and his wife, imagine my surprise at the $150 PER TICKET fee due to the short time frame!

  • Arizona Road Warrior

    The “expedite” fees for award tickets are another way for the airlines to generate revenues.

    Last week, I made a reward travel reservations on US Airways for a family vacation. Back in March and April, I started to look at the tickets and there were only HIGH mileage tickets available. Once it was within 14 days, LOW mileaage tickets became available along with a $ 75 expedite fee for each ticket.

    I made these reservations online; therefore, I didn’t talk up any time with a customer service representative.

  • noah

    I’ve repeatedly defended the various a la carte fees, and have no problem with them charging a $125 21-day booking fee if they believe that’s what’s best for their business. Indeed, I would argue that they have a duty to their shareholders to do so if that’s what believe is best for the company (although I strongly disagree that it’s what’s best for the company). That said, I do not understand why they don’t refund this. The fee is not for booking a flight, it’s for booking a flight that you can actually take. They should have refunded the whole amount.

  • travelgal

    Noah –
    I guess I do understand a lot of the fees – but these fees on using award miles when you do all the work yourself are insane.

    Prior to the 21 days you are lucky if you can find any award seats that are at the lower rates (ie: 12,500 each way vs. 25,000). On Delta, I rarely even see an award seat for less than 40k roundtrip. The fee on booking <21 days in advance is just their way to force you to either pony up the extra miles to avoid the fee, or pony up the money to get the lower mile ticket. In both cases it's the airlines way of making you pay more for the award seats you've worked so hard to earn.

  • Chicky

    @MVFlyer: You know, you brought up an interesting point. There’s no doubt AA spent way more than $25 in time and bandwidth on this issue, and that’s one of those puzzlers for me.
    When an airline is asked to refund a modest fee, like $125, or anything under $200, why not just REFUND it? If the traveler is at all serious, he or she will continue to call or e-mail at least a few more times, which pretty much guarantees the airline will spend more than the original amount trying to dodge refunding it.
    These airlines (and hotels) need to learn that goodwill is priceless. Refund these little piddly amounts, and you have happy customers who will give you REPEAT business! If the person’s request is halfway legit, refund the money and you’ve made a friend. Refuse and run the risk of them calling Christopher with their issue, in which case they will probably end up issuing the refund anyway, to avoid being lambasted on this blog.

  • Rich

    @Chicky.
    It’d be nice if they did that.
    Fact of the matter is that very few of the customer service people actually have the authority to make that refund. One of the reasons they say “no” is that they’re not allowed to say “yes”!
    Additionally, they can’t make the dangerous stap of setting a precedent. That why when one DOES get some satisfaction from the airline, it’s often prefaced with the phrase that the airlines is “making a ONE-TIME EXCEPTION” to their policy to allow such a refund to take place.

  • Jamie

    I just received this email from Delta, and immediately thought about this story I had just read. “As part of our efforts to improve your SkyMiles experience, we are eliminating SkyMiles Award Ticket redemption fees, effective immediately.

    This means you will no longer pay a redemption fee of up to $150 when you book an Award Ticket within 20 days of departure. Award Tickets booked 21 days or more prior to departure will continue to have no Award redemption fee.”

    Looks like one airline has come to it’s senses, but will others?

  • Carver

    @Noah

    I too have defended some of the fees. But regardless of what is in the best interest of the company, the company should always act ethically and should comport with good business practices. Fees to book award tickets using miles that you already earned makes just isn’t right. Further, if ian airline charges $20 for phone service, how do you justify $150?