Fees Find Their Way to Frequent Flier Programs

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Say goodbye to bonus miles. US Airways, on Aug. 6, is eliminating this standard perk. Not only will elite Dividend Miles members no longer earn extra miles on flights with US Airways and partner airlines, but they’ll also pay processing fees on flight award redemptions ranging between $25 and $50.

Such is the state of frequent flier programs, as airlines struggle to find new sources of revenue.  Carriers are in a “lifeboat moment” throwing everything overboard to keep from sinking into extinction, said Jay Sorensen, and airline industry consultant and president of IdeaWorks, Milwaukee.

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