By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: Beyond taxes and fuel surcharges, award tickets carry program fees that quietly cut your value: close-in booking fees for booking near departure, phone booking fees when a route cannot be booked online, and redeposit or cancellation fees to get miles back. They are avoidable with the right program and timing, but if ignored they can turn a good redemption into a mediocre one.
The fees beyond taxes and surcharges
Everyone knows about fuel surcharges, but award tickets carry other fees that are easy to miss. Close-in booking fees apply when you book within a window of departure, often 21 days, and can run up to 75 dollars per ticket on some US programs. Phone booking fees apply when a partner award cannot be booked online and you must call. Redeposit or cancellation fees apply when you cancel an award and want your miles back. None of these show up until you are deep in the booking. See the fuel-surcharge trap.
How they erode a redemption
Each fee is small on its own, but they stack and they hit the cheapest awards hardest. A 75-dollar close-in fee on a 12,500-mile domestic award is a large percentage of the value, effectively cutting your cents per mile. Pay a phone fee plus a close-in fee on a last-minute partner booking and you have quietly given back much of what made the award a deal. The fees are real costs that belong in your value math. See finding award space.
How to avoid them
Most of these fees are avoidable. Book outside the close-in window when you can, favor programs that waive close-in fees, especially for elite members or on their own cards, and use programs whose partner awards are bookable online to dodge phone fees. Before canceling, check the redeposit fee against the value of the miles, and avoid speculative bookings you may need to unwind. Choosing the right program for a given award often matters as much as the headline mileage price. See worst redemptions.
Frequently asked questions
What is a close-in booking fee?
A fee some airline programs charge for booking an award close to departure, often within 21 days, commonly up to 75 dollars per ticket. It is easy to miss and hits cheap awards hardest, cutting your value per mile.
What are award redeposit or cancellation fees?
Fees to cancel an award ticket and return the miles to your account. They vary by program and elite status, and can make canceling a speculative or changed booking costly, so check them before you book or cancel.
How do I avoid award booking fees?
Book outside the close-in window, favor programs that waive close-in and change fees for elites or cardholders, use programs whose partner awards book online to avoid phone fees, and weigh redeposit fees before canceling.
Do award ticket fees really matter?
Yes, especially on cheap awards. A 75-dollar close-in fee on a low-mileage domestic award is a big share of its value, and stacked phone and redeposit fees can erase much of the savings, so include them in your redemption math.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
