Whatever kind of traveler you are, you still might be a winner.
I admit it: I love Emirates, although it’s been an on-again, off-again love affair. Let me explain. We follow lucrative strategies with this airline often: how it can get you to many
, including many obscure and hard-to-reach places in Africa and the Middle East, like the Maldives, Mauritius, Seychelles, etc.; how it has an extraordinary First Class experience; and how it also features two nonstops between the U.S. and Europe.
So, what the heck is going on at Emirates lately?
Playing Yo-Yo With Taxes and Miles. Here’s a Timeline…
May 2020
Emirates reduced its taxes on mileage travel apparently to draw interest during Lockdown. Before the change, it charged $1,143 dollars in taxes on a round-trip First Class ticket between Newark and Athens, and $1,543 between New York and Dubai. The change in May 2020 brought it all the way down to $125 Newark-Athens, and $362 New York-Dubai. It made headlines in the travel world and FCF wrote about it here and here. And then…
July 2021
Cheers turned to jeers when Emirates eliminated its "Classic Rewards" and increased its pricing on First Class mileage award travel as Lockdowns began to lift. Let’s break it down:
Before July: New York/Newark-Athens and New York/JFK-Milan were 135,000 miles. After the First Class award cost devaluation: 170,000.
Boston, Chicago, Houston, New York, and Washington, DC, to Dubai was 217,500 miles before the devaluation but jumped to 272,500 afterward.
Before: Los Angeles, San Francisco, and Seattle to Dubai was 247,500 miles.
After the change: 310,000.
That’s a whopping 20 percent increase to Dubai and 21 percent increase to Europe.
And then, just to rub salt into that wound, the calendar turned to…
March 2022
Beware the Ides of March, they said. And wouldn’t you know it, Emirates has jacked up its taxes again. For San Francisco-Dubai, they’ve risen from $360 to $1,220; for Chicago-Dubai they’ve jumped from $360 to $1,260. The good news: New York-Milan only increased from $117 to $174.
So in just 13 months, to Dubai the airline covered the tax decrease with a miles price increase, and then pulled the rug out again with big tax increases. Emirates, that yo-yo is making me dizzy.
The three examples below sum up how the whole sorry story has gone over time...
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I’ve broken down this Emirates situation by traveler type, and what each perspective brings.
What Kind of First Class Traveler Are You and How Should You Act on the Inflation?
Over the last three decades, FCF has focused on finding the best air travel deals. While typical travel commentators talk doom and gloom, we’re here to talk about perspectives on opportunities. Taxes to Dubai may be high, but they’re still relatively low for Europe.
Consider these different ways to look at your options:
For the premium traveler who have never flown Emirates First Class: If you were ever going to splurge on air travel, it would be flying First Class on the Emirates A380 with the shower. You can find it on their routes from Dubai to/from Los Angeles, Houston, New York, San Francisco, and Washington, DC; and New York to/from Milan. It’s just plain fun. Impractical? Yes and no. There’s nothing like a shower near the end of a long flight to freshen up and help beat travel fatigue. It even helps with jet lag.
So if you haven’t done it, and you’re into premium travel delicacies, I say bite the tax-hike bullet. It’s really nothing when you consider that these tickets can run $16,000 to Europe and $21,000+ to Dubai. It’s still a steal, even if you just missed buying the dip. Stay tuned for FCF’s ongoing coverage of Emirates First Class Sweet Redeems.
You’re a budget First Class traveler and have already flown the Emirates A380:
You don’t want to pay this hike, forget about it until the next industry crisis occurs and airlines need your business again. Perhaps unlike any other industry, airlines yo-yo from not needing your business one day to desperately wanting it the next. Right now, they don’t need to beg for business.
You’re an inflexible First Class traveler with a decent budget:
You win! Wait, what? The tax increase is going to eliminate the large base of travelers who only get into Emirates First Class because they’re hacking bank credit card sign-up bonuses. The high taxes will eliminate this crowd, along with others that the $900+ increase will leave out. That’s because when those travelers exit the game, availability opens up for you. So, particularly if you’re inflexible with dates, your options open right up and you should welcome the inflation.
See you up front.