Originally Posted by
gearassss
to make sure i understand it correctly:
lets say I buy a ticket today, 9.nov 2016, exchange rate is: 17:1 EGP:USD.
i start my trip whenever, and on Jan 1st 2017, I decide for my 2nd leg i want to change my flight lhr-mad-gru to smth like lhr-jfk-gru. I have to pay 100$ difference in airport fees/taxes/surcharges.
exchange rate at that date is 1:14.
do i have to pay 1700EGP or 1400EGP?
from what i understand from the quote I'd say 1400EGP, which is actually much cheaper than 100USD just because i "locked in" FX rate at the date of the purchase?? tbh seems to be good to be true, but what do i know, base LONE4 fare for less than 1000USD is to good to be true
In the hypothetical you have set up the EGP actually increases in value from the date of purchase and the date of making the change. Assuming the USD100 is based on fees, etc stated in dollars (and not calculated from some other currency) you need fewer EGP to make up the 100USD.
Note that in the example given you did not lock in the original rate, but rather are paying using the assumed January rate.
Note that your assumption that the EGP will strengthen by that amount by January is very questionable at best.
Also, the conclusion that the January transaction becomes much cheaper really depends on what currency you are holding If you hold dollars the 100USD fee costs 100USD both on initial purchase and January change, If holding EGP you will need fewer pounds to make the 100USD
In sum, there may be two faulty assumptions in your analysis: 1) that the EGP will strengthen 2) that the changed fees will be calculated using the January exchange rate. A previous post seemed to suggest the November rate will be used.