Maximise your Avios, air miles and hotel points

Whoa: £1200 surcharges now showing on BA and Virgin Atlantic redemption flights

Links on Head for Points may support the site by paying a commission.  See here for all partner links.

Both British Airways and Virgin Atlantic have sharply increased surcharges on redemption tickets.

This definitely covers routes to North America – I’m not totally sure about the impact elsewhere due to a lack of historic data.

Avios flyers have some protection because of Reward Flight Saver which caps your fees, but you will take a big hit if you use Avios to upgrade to Business Class.

What’s happened with Virgin Atlantic surcharges?

Let’s take a look at what you pay, starting with Virgin Atlantic.

Here’s an Upper Class return to New York:

BA and Virgin sharply increase surcharges on redemption flights

£900 of ‘carrier imposed surcharges’ (which is pocketed by the airline) is pretty crazy, however you cut it. This is a £200 increase on what you would have paid last week.

Premium is ‘just’ £280 of ‘carrier imposed surcharge’ return:

BA and Virgin sharply increase surcharges on redemption flights

What’s happened with Avios surcharges?

Let’s go across to Avios.

Here’s a Club Suite return from Heathrow to New York JFK off-peak. The price is unchanged at 160,000 Avios + £350 because of the Reward Flight Saver cap:

However, if you look at upgrading a World Traveller Plus flight to Club World, you see the full force of the £900 ‘carrier imposed surcharge’.

Here’s a World Traveller Plus cash ticket to New York which is £999 return:

Let’s try upgrading this ticket to Club World with Avios during the booking process. You may, naively, believe that the price would be 48,000 Avios + the World Traveller Plus cash price of £998.59. You would be wrong.

Here’s exactly the same flight but using the ‘upgrade with Avios during booking’ option. The cash element shoots up to £1,619. The difference of £620 is because the ‘carrier imposed surcharge’ has jumped from £280 (World Traveller Plus) to £900 (Club World).

However …. want to see something weird?

BA has NOT increased the surcharge on First Class tickets, which is ‘only’ £550 return:

First Class – which is not part of Reward Flight Saver, remember – now has total taxes and charges of £849 between Heathrow and New York. Compare this to the £1,199 of taxes and charges you have to pay on a Club World seat when upgrading from World Traveller Plus.

Conclusion

It’s not a coincidence that BA and Virgin Atlantic keep their surcharges in step. This is always the case.

I don’t know who moved first here. The Virgin Atlantic increase happened in the last 48 hours but I don’t know when BA went to £900. If it was British Airways moving first, and Virgin Atlantic automatically followed, then Virgin Atlantic has been caught out.

Ever since BA moved to Reward Flight Saver for long haul redemptions, the carrier surcharge doesn’t have an impact on what you pay. The surcharge only kicks in for anyone upgrading with Avios or who doesn’t qualify for Reward Flight Saver – which isn’t many people.

For Virgin Atlantic, an increase in surcharges makes a difference to everyone who redeems.

£1,196 return for Upper Class is just silly. Pre-covid, BA Holidays would regularly offer Club World flights to New York, plus 3-4 nights in a hotel, for £1,299 per person all-in. Even in recent sales we have seen cash tickets to New York in Business Class drop back to the £1,500 mark.

We have, of course, seen Virgin Atlantic offer a lot of reward seat sales in recent months. There was one just last week. However, even with a 50% reduction in miles, you’d still be looking at around 50,000 Virgin Points plus £1,200 in taxes and charges for a return flight to New York. This isn’t much of a deal.

At the full price of 95,000 Virgin Points plus £1,200 of taxes and charges, you seriously have to consider what value you are getting out of Virgin Flying Club if your goal is premium cabin redemptions.

What is crazy is that you can still redeem Virgin Points for one way Delta flights in Business Class from the USA to mainland Europe for just £5 in taxes and charges.


How to earn Virgin Points from UK credit cards

How to earn Virgin Points from UK credit cards (April 2025)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 18,000 Virgin Points and the free card has a bonus of 3,000 Virgin Points):

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

3,000 bonus points, no fee and 1 point for every £1 you spend Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 50,000 Membership Rewards points, which convert into 50,000 Virgin Points.

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points

Comments (231)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • david says:

    Sorry to sound naive but what would IAG achieve from devaluating Avios overnight Radisson-style?

    • Chrisasaurus says:

      Well, if directly devaluing them then a significant reduction in their liabilities and one off profit on paper

  • Paul says:

    This is surely collusion and anti competitive. If accurate it is a disgrace and should be investigated by the regulators. It’s bad enough that BA and VS have alliances which allow them to “co-ordinate” schedules and fares within the group but this is on a different scale.
    What’s clear, and despite my desire to this investigated, is that both carriers have acted with impunity as they know there is no consumer protection and the regulators would take years to investigate before saying it was legit. Shocking behaviour!

  • TeesTraveller says:

    What did BA and Virgin say when you asked them about this?

  • SH says:

    The carrier surcharges combined with limited availability and the difficulties of arranging redemption travel around life – ie can you get an award ticket when you are actually able to travel – is why I have given up on collecting Avios and transferring MR points to the scheme. I have a premium 2-for-1 voucher about to expire; what a waste, but in two years we haven’t found a flight we want to take at a time we could get off work.

    I’ve found it far more efficient to simply learn ITA Matrix, book the best cash fares I can for the times and places I want to go, and go all-in on hotel points. At least then you can always always always get one element of your trip ‘for free’ – and unlike flying there are no surcharges except maybe a few dollars of mandatory city taxes.

    What Avios are left I am using mostly for partner awards, where you can really access outsize value. @Rob: I have sent you a recent example by email of booking a partner award where the cash fare was almost a thousand pounds for only 26000 Avios plus £60 — this is where knowing what you can do with Avios really pays off.

    • Andrew. says:

      26,000 + £60/£1,000 combi?

      You can achieve something similar regularly on a weekend trip to EDI from Heathrow or City.

      • SH says:

        This is a considerably nicer and more useful redemption than that and international.

    • Thywillbedone says:

      Starting to head this way myself. Sitting on a large pile of Avios as I do, you find yourself focusing on available long haul reward destinations instead of where you actually want to go. It is clear that there are still far too many Avios swashing around the system and high cash fares which are supporting the idea that one is saving money. Will continue to send most of my points to hotels for the foreseeable.

  • Richard says:

    I’m at a loss to understand pricing – cash or miles – to The USA at the moment.
    Admittedly an n=1, but I flew LHR-ORD in January and then back LAX-LHR with United, and both planes were practically empty. The way out – business was about 90% full – premium was 30% full, eco had about 10 people in the whole section. On the way back, the situation was about the same although premium was at capacity. Despite this, fares are still high – about 40% higher for the same January dates as they were 12 months ago. I don’t really understand it – and now this bizarre choice.

    • Chris W says:

      Plenty of rich Americans keen to travel to Europe in premium cabins right now.

      • Richard says:

        Which makes sense Chris given strength of the $, but big city European hotel rates are also pretty high, and why would an airline not at least try to fill the back of the plane? On the way back, I actually moved from Premium into Eco, as I had my pick of sets of 3 seats where I could lie flatish

  • Peter says:

    They are not the only ones. Lufthansa are charging $1000 on business class reward flights from the USA.

    • Paul says:

      From the USA – where you can get enough miles for a flight just by waking up in the morning. Here it’s quite different with at best 20 or 30,000 Avios sign up for a consumer card

  • executiveclubber says:

    If they rolled this out further, the points game would be up…

    • Nick says:

      Just checked Johannesburg and it’s still ‘only’ £863 of taxes but if they roll this out further than Virgin scheme is dead

  • Olly says:

    Is the situation the same when you upgrade a cash Virgin flight to Upper? You covered the BA scenario but not the other way around so that would be a helpful clarification.

    If it is then Virgin points are now hardly worth collecting IMO. Time to cash out

This article is closed to new comments. Feel free to ask your question in the HfP forums.

The UK's biggest frequent flyer website uses cookies, which you can block via your browser settings. Continuing implies your consent to this policy. Our privacy policy is here.