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Iberia agrees to refund improperly-collected PFCs on certain redemption tickets.

Iberia agrees to refund improperly-collected PFCs on certain redemption tickets.

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Old Mar 26, 19, 11:19 am
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Iberia agrees to refund improperly-collected PFCs on certain redemption tickets.

Last Summer, I used Iberia Plus Avios to book a four-segment redemption ticket on AA for travel wholly within the U.S. Because this was a zero-fare ticket with no carrier surcharges, the ticket was exempt from U.S. Passenger Facility Charges (PFCs). Nonetheless, Iberia charged me $18.00 in PFCs ($4.50 x 4).

Based on other posts here on FlyerTalk, it appears that Iberia has been doing this for some time.

Following a complaint filed with the U.S. Department of Transportation, Iberia has agreed to refund the $18.00 that was improperly collected, is awarding me 10,000 Avios as an apparent customer-service gesture, and is investigating how the error occurred.

If you have improperly been charged U.S. PFCs on zero-fare, zero-carrier-charge Iberia Plus redemption tickets, you may now be able to recover those fees by complaining to Iberia and/or the U.S. DOT. Keep in mind, however, that only redemption tickets with a zero fare and no carrier charges are exempt from PFCs. If you redeem IB Plus Avios for a ticket from the U.S. to Europe on any carrier, there will be carrier charges on such a ticket, and the ticket will not be exempt from PFCs.

Iberia Plus Avios can provide excellent value on short- and medium-distance roundtrips on AA within North America, especially those that require connections. Be aware, though, that Iberia does not permit any changes or refunds on redemption tickets for travel on AA.
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Old Mar 26, 19, 2:09 pm
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Kudos on an appropriate resolution, and also on alerting others so that more people can benefit.
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