11/20/2024
✈️ Alert: Air France/KLM Award Ticket Taxes Soar!
Air France and KLM have dramatically increased taxes on award tickets in anticipation of the 2025 finance bill, which significantly raises France's airline ticket solidarity tax (TSBA). Here’s what you need to know:
⚠️ What Changed?
- The TSBA, a tax levied on flights departing from France, is set to spike starting January 1, 2025, affecting both new and previously issued tickets.
- Air France-KLM preemptively passed on these tax increases to customers beginning October 24, 2024.
💸 The New Tax Rates:
- Domestic & EU/EEA Flights: Economy/Premium: €2.63 → €9.5 | Business: €20.27 → €30
- Flights Under 5,500 km: Economy/Premium: €7.51 → €15 | Business: €63.07 → €80
- Flights Over 5,500 km:** Economy/Premium: €7.51 → €40 | Business: €63.07 → €120
🚨 Impact on Award Travel
For long-haul routes, taxes for award tickets have skyrocketed, with some reaching **€2,500**—making Air France/KLM redemptions far less attractive.
✅ What to Do Next:
- Reevaluate Your Options: With Virgin Atlantic lowering their rates, explore alternative programs to maximize value.
- Stay Informed: Taxes can significantly alter award ticket costs. Keep tabs on changes to avoid unexpected expenses.
🌍 Pro Tip:
-Don't transfer points from your credit card to Air France to book a flight before you verify the tax amount!
-Shop smarter and diversify your loyalty points strategy to adapt to these shifts in the travel landscape.