We estimate that the airline industry will lose over $7 billion in 2008. With fuel costs higher than they’ve ever been, we’ve had to look at ways to offset our increased operating costs. Increasingly, airlines are charging for a-la-carte services such as checked bags, seat assignments, and award travel in order to offset these increased costs.

Unfortunately, due to the highly competitive nature of the airline industry, even a small fare increase can be impractical.

Award tickets are not free. Award travelers are responsible for taxes, facility surcharges and security fees, as well as any fees assessed by the airline in conjunction with award travel.

Increasing the number of miles required for an award ticket would make award travel impossible for many members. The decision to charge a nominal fee will ensure that award travel continues to be accessible for the majority of our members.