British Airways to Pay 2.2 Billion Avios in Class Action Settlement

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US-based British Airways Executive Club members could be in line for an Avios windfall after BA reached a settlement in a fuel surcharge class action lawsuit against them. Those eligible for compensation will receive between 12,500 and 35,000 Avios depending on their redemptions. The court should sign off on the settlement on July 27, 2018, although that could change.

British-Airways-A380

Who Is Eligible

To qualify for the settlement, you must meet the following criteria:

  • Be a US-based BA Executive Club member
  • Have redeemed Avios and paid fuel surcharges between November 9, 2006, to April 17, 2013
  • You can register to see what settlement you are eligible for, although once the deal is approved, you will not have to take any action to receive the Avios. You should have received a notice if you're eligible –haven't, reach out to the settlement administrator

What You Will Receive

Depending on how many redemptions you made during the period covered by the lawsuit, you will be entitled to the following compensation:

  • One redemption: 12,500 Avios
  • Between two and five redemptions: 20,000 Avios
  • Six or more redemptions: 35,000 Avios

You also have the option to receive your compensation in cash instead of Avios. You need to head over to the claim page (which is still not live) and file your claim by July 29, 2018. You will receive 16.9% of the amount you paid in fuel surcharges with a minimum of $5.

Should You Take Cash Or Avios

This will ultimately depend on how much you have paid in fuel surcharges. Go through your records and add up how much you have paid in fuel surcharges and then calculate what 16.9% would work out as. If the cash value is greater than the cost of purchasing 35,000 Avios, then you are better off taking the cash and purchasing the Avios if you want to. Alternatively, you are better off taking the Avios if you will only receive a small amount of cash. Obviously, if you have completely quit the points and miles game and have no interest in award redemptions, just take the cash!

Our Take

BA fuel surcharges are universally hated, and can be ridiculous; in some cases, the surcharges for an economy award can be more than paying cash for the ticket. It is good news to see BA taking a hit to their fuel surcharges policy, and that compensation will be paid out!

Source: One Mile At  A Time

British Airways to Pay 2.2 Billion Avios in Class Action Settlement
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Comments

  • Thanks for the info! I will check and see if I am eligible for this settlement.

  • About time that BA had it stuck to them

  • Still they charge the same insane amount of fees on award travel.

  • They should simply eliminate these kind of charges.
    They should include the fuel surcharge (or the airline surcharge as they call it now) in the fare. It’s all!

  • It’s like an IRS refund. We loan you the “money” for X amount of time, and then we’re excited to get it back, though we shouldn’t be.

  • Maryjane says:

    I’m not eligible for any money back because all of my Avios bookings have been with airlines that don’t require fuel surcharges however, it is good to see BA being held accountable for these disingenuous charges. I agree that taking the cash is probably the best way to take the compensation. Back when I worked for the airlines, a senior employee told me the airline much prefers giving out miles since these really cost nothing (they are a currency that the airline can print at will) — most miles never get used! Of course, the people who read this blog are an exception to this rule.

  • Sebastian says:

    Will other carriers have to do the same?

    Plus, if my Account is not us-based, i won’t get any Points?

  • That’s a ton of miles for some that I know

  • I have always avoided flying BA because of their excessive fuel surcharges.

  • It sounds like a lot of Avios, but it’s actually a rounding error for IAG at whatever they value Avios liabilities at. Compare that to all of the money they’ve grabbed as fuel surcharge on rewards…

  • Can’t help but think of the ‘inflationary’ effect of doling out this many Avios at once, in terms of award availability…

  • The surcharges were / are a nightmare.

  • If they are settling can BA still continue to charge this ridiculous fuel surcharge after the payout?

  • beppoello81 says:

    And yet no sign they will be changing their surcharges any time soon. So easier to devaluate the whole program I am afraid…

  • Those fuel surcharges on award flights are ridiculous.

  • Interesting. I agree with others in that I don’t book with BA because of their high taxes, etc. I wonder if this will change their fees?
    Has anyone seen a change online with mileage tickets?

  • Good that they are being held accountable. I have a friend in the UK and will tell them about this news. This blog is always informative!!!

  • About time BA paid out . Its so unfair how many TIMES i FOUND that the cost of avios and award redemption cost exceeds the cost of a cash price of a ticket.

  • About time BA paid the price .

  • Fuel surcharges are really ridiculous! This makes the use of the points often almost unfeasible. Let’s see if something happens with other companies after this decision, we sure hope so.

  • Good point, might make sense to take the money then.

  • I’m not eligible because I always redeem avios on AA.

  • too bad my redemption is too late to qualify for this

  • The_Bouncer says:

    Nice to see them brought to acount for these outrageous “fuel surcharges”. Doesn’t stop them simply changing the name to “carrier surcharges”, though.

  • What an interesting chain of events! It will be fascinating to see how many people benefit from this.

  • It seems to me, if people don’t like the surcharges, they should just chose to not fly on their airline.

  • nice, I’m getting a small amount myself!

  • They still have the charges, they just call them carrier imposed charges now. It has only caused an issue for BA as they previously called them fuel surcharges. I do fear with all those extra avios in circulation BA will look to devalue them.

  • BA fuel fees are excessive and unfair as this suit proved. Hope they learn and change but maybe they will still come out ahead and care less.

  • This is amazing. I sent an email to the link provided on the settlement page, but still haven’t heard back. Has anyone else heard back from them with your unique ID yet? I am sure it might take them awhile to get through all of the claims.

  • beppoello81 says:

    Anyway, this is good news!

  • Aleksandr says:

    Thanks for info. I have big amount in BAEC and I`m planning to trip with BA. It`s good news for me/

  • @lorrie Same here. We’ve had several First redemptions, but all post-04/2013. Would have been nice to get some points, or a little cash back, but, still no regrets. BA First is still a comfortable way to fly, and the Concorde Room at JFK is one of my most favorite lounges.

  • I really hope this makes them take a hard look at their taxes and fuel surcharges.

  • They’ve always had insane fuel surcharges. Hopefully this brings them back down to earth…

  • @Tim says: “It seems to me, if people don’t like the surcharges, they should just chose to not fly on their airline.”

    Yes, and at the same time make their decision and reasoning well known, informing others and the company, so that such questionable behavior might change.

  • BA’s “fuel surcharges” are outrageous and simply shameful. Glad to see them taking a hit for this. Hope it helps them to reconsider this customer unfriendly money grab.

  • miskocina says:

    BA flight redemptions are ridiculously expensive. It’s much better to pay for revenue flights instead and actually earn some Avios.

  • I was womdering why Singapore Airlines removed fuel surcharges recently. This may be the reason

  • My husband just received an e-mail and after logging in had a choice of 12,500 avios or $86.00. He took the avios.

  • On SQ, the surcharges have come down from $150 to $20 for most 4 hour flights. Thanks to the wider effects of this lawsuit.

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