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Price increase for Reward Flight Saver flights

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I am a big fan of Reward Flight Saver flights which allow you to redeem Avios points for BA or Iberia flights within Europe for a modest level of taxes and charges instead of the £100+ charged on a revenue ticket.

The following announcement has appeared on avios.com:

British Airways

Reward Flight Saver gives you a great deal on British Airways and Iberia flights to Europe and further. It’s a fee you pay and we cover all your taxes, fees and surcharges.

If you book before 8 October 2012, the fee is £27 in Economy Class and £34 in Business Class. After this date, our prices are rising by a small amount to £30 in Economy and £40 in Business.

This increase reflects rises in air passenger duty (APD) – the government’s flight tax – and rises in fuel prices. We’ve kept the increase as small as possible, so we can continue to offer you big savings on flights to Zones 1-3. On average, £30 Reward Flight Saver will save you more money than before.

This is obviously not great news. The statement that this “will save you more money than before” is also spurious, since it assumes that BA will raise flight prices by the same as the increase in APD. In reality, the short haul market is so competitive that I doubt they can do this.

A £3 or £6 rise is clearly not the end of the world, but it is disappointing nonetheless.

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