Beat BA’s fuel surcharge with an Air Miles credit card

By Donna Jennings Staff Writer Tuesday, 3 June 2008

Related Money News See our other recent related news stories: EasyJet Launches Air Miles Credit Card Low cost airline EasyJet has launched what may well be the best Air Miles credit card ever, offering substantial rebates on easyJet flights. Tesco Or BA: Who gets you flying further? In a face off between Air Miles credit cards, discover which Air Miles credit card will get your flying the furthest. Credit Cards the only way to book DIY holidays If you are shunning package holidays this year and creating your own package instead, make sure you book it on your credit card and not your debit card or you won't be covered if things go wrong. How to Save Money on your Hols this Summer With the Pound languishing against the Euro, you're going to have to hold back on the margarita's in Spain this summer or follow Julia Kukiewicz's advice on how to make sure the weak pound doesn't floor you as much as your weak tummy.

FLIGHTS with British Airways are set to soar from today, as the company battles with an extra £1bn fuel bill, and passes the costs onto its customers in the form of increased fuel surcharges.

While the environmentally sound thing to do is fly less, those with no choice can still claw back those lost fuel surcharge pounds with a credit card that earns Frequent Flyer Miles - or Air Miles.

There has never been a better time to start collecting frequent flyer miles and resuscitate your wallet from these hefty surcharges.

What are air miles?

The majority of consumers are familiar with the term but it is surprising just how many have never really looked into the benefit of air miles.

In a nutshell, Air Miles (or more correctly, Frequent Flyer Miles) can be collected using a reward or loyalty card and exchanged for free flights with airline companies, Eurostar travel or even hotel accommodation.

How do I collect Air Miles?

There are many loyalty and credit cards that allow you to collect air miles for every pound you spend.

This is rather like a cash back card but instead of redeeming cash, you redeem those all important air miles.

Here is a summary of four popular Air Mile cards to make your Air Miles soar.

1. The British Airways card
   
   This Amex credit card offers 1,000 BA miles for every £1000 spent and the company will also throw in 1000 free BA miles on your first transaction.
   
   BA miles can only be redeemed on flights within the British Airways network



2. Tesco Clubcard
   
   A Tesco Clubcard is a loyalty scheme which offers 1,250 points for every £12.50 spent in Tesco. This is equivalent to 300 Air Miles or 3,000 BA miles.
   
   So the next time you do your weekly shop or buy that new electrical appliance, you can top up your air miles.
   
   The more you spend the more air miles you notch up. Every little helps!



3. The Lloyds TSB Duo credit cards:
   
   Two credit cards connected to the same account. The Lloyds TSB American Express card clocks up 100 Air Miles per £1000 spent.
   
   The Lloyds TSB MasterCard racks up 100 air miles for every £2000 spent but after 6 months, this is reduced to 100 miles for every £5000.
   
   Although the Lloyds TSB American Express Card is the more generous option of the two, it is harder to clock up Air Miles as this card is not so widely accepted.



4. The EasyJet credit card
   
   Compared with most Air Mile cards on the market, this little treasure offers massive perks to new clients.
   
   Benefits of the easJet credit card include:
   
   • 0% interest rate for nine months on balance transferred from another card.
   
   • 4,000 free air miles as a reward for those who spend £250 on their card within the first three months. (This is equivalent to a flight retailing at £40.00 including tax charges).
   
   • For every £1 you spend within the first three months you will also clock up one mile.
   
   • For every £1 you spend overseas you will rack up 2 miles.
   
   • For every £1 you spend on an EasyJet flight you will gain 3 miles along with £100,000 insurance cover.
   
   So if you book this year’s summer break with EasyJet, you can pack away all worries of how to afford your next holiday as you will literally save as you spend.
   
   nother perk to accumulating Air Miles with EasyJet is that you are unrestricted with your destinations so the world really is your oyster.
   
   You can also book your hotel accommodation or car at the same time as your EasyJet air fare and you collect even more air miles.

Which credit card gives you the most miles for your money?

You can compare the best Air Mile credit cards available, and calculate how far they will get you by inputting your estimated spending on the card, using our Air Miles Credit Cards Comparison page.

How can I increase my air miles?

A good way to increase your Air Miles is to make your monthly mortgage payments on your loyalty/reward card so as you can see the distance really start to grow.

Word of caution

Remember that air miles are only awarded if you pay off your balance in full each month.

If you are only repaying interest, your air miles will not increase and it is likely that the interest fees will exceed any reward value you would have garnered from the purchase in the first place.