miztressuz
DIS Veteran
- Joined
- Feb 23, 2011
It's not SW paying less taxes, you're paying less taxes. By law/regulation/something airlines must show you the all-inclusive fare which includes the base rate, fees, and the government mandated excise taxes/fees (except for the 9/11 security 5.60 fee, that's always separate). If you look at a fare break down you can see the base rate of the ticket versus the other fees to see what the actual fare is. SW points are calculated on the base fare, which is why you can see tickets with different cash prices cost the same amount of points.Hmmm, I guess I don't want any of them going under. But if they are paying less taxes then it seems like my ticket should be less money also. But since their prices fluctuate so much they seem arbitrary anyway. Oh well, not sure what to do about those flights now. Need to decide if I really want to change them by a day for more points.
The example the article showed something like a $49 ticket costing less points than a $45 ticket. I don't know the actual breakdown but pulling numbers out of the air, say the $49 ticket was $35 airfare and $14 in taxes. But the $45 ticket is now $40 airfare and only $5 in taxes. It's still cheaper overall but SW increased their fare by $5 so the points cost would also increase. It might feel like a deval but if you calculate the cpp using the base rates and not total ticket cost it should be around the usual redemption rates.
Doesn't help that it's still more points but it's not supposed to be a devaluation (at least not yet).