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Icelandair Update: What To Do If You’ve Been Overcharged on Taxes

Quick update this morning: A number of people have written me (and posted on other sites) that they feel they have been overcharged on taxes for tickets purchased with the Icelandair/Alaska Airlines deal. For non-Mexico travel, taxes and fees should be in the $60-70 range. For Mexico tickets, it will be higher than that (I don’t have the exact amount in front of me, but I seem to remember it was something like $125/ticket – let me know if I’m wrong).

If you have been charged taxes that are significantly higher than those amounts, my Icelandair contact has asked that you send an email to — they’ll investigate. I believe that a couple of days ago they started charging taxes (US Departure tax, Passenger Facility Charges) that should not be charged on Award Tickets. I’m not 100% sure of that, but I think this may explain why some people are seeing charges in the $150 range instead of $70.

If you hear back from Icelandair, please post your experiences here.

UPDATE: a few (or more than a few) have said that they have emailed that address and not heard back yet. I spoke with my contact at Icelandair and they know about the emails and are working through them one-by-one. They will get to yours if you sent them an email, but it will take a bit of time. They’re swamped (again). Thanks for everyone’s continued patience.

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  1. Thanks for the update. Your work on this has been fantastic!

  2. Just sent them a message. I was charged over $240 for two award tickets within the cont. US. (SAN-SEA-EWR EWR-SEA-SAN). Pretty sure that’s too much, ouch.

  3. Sterling Traveler

    Thank you for the update! I booked my flight yesterday and saw I am being charged over $100 when Alaska would have only charged me $55 for the same award itinerary.

  4. I was charged $649 for service fees/taxes on my two first class tickets (OAK – OGG). That was more than the price for the points. I called IcelandAir last week, and they provided the same email address you mentioned.

    Almost a week has passed, and I have received no reply except for confirmation that they received the message. I called them again on Monday and was told that the situation would be remedied Tuesday. It was not. I’m getting a little frusterated- being overcharged $500+ and not having that fixed quickly is ridiculous.

  5. Just got an invoice for my final 2 RT tickets ord-koa-ord with taxes/fees of 34,700 ISK or about $289. I have emailed them again (also did this a couple days ago for the first pair of tickets i had with the overcharge). No response from that inquiry yet(other than autoreply).

  6. Hey Jared, from SAN > HNL, the total taxes I paid for 2 tickets came out to $129.53 USD, after looking at the E-Ticket IcelandAir emailed me, it looked like I was charged 7700 ISK = $63.38 USD. Does that sounds correct to you or should I email them?

  7. I was charged correctly on the taxes, I think, but I got double-charged for the points — or rather, one of my “failed” purchase attempts from 8/22 was eventually put through on 8/24, in addition to my successful purchase on 8/23 after the glitch was repaired. I emailed customer service last night and am waiting for a reply. Anyone else with similar experiences?

  8. I just called IcelandAir and the rep told me everything to Hawaii is sold out… Anyone else get told this?

  9. I just called IcelandAir too and I was told too that all flights to Hawaii are sold out. I asked if it was for the whole entire year? And she said yes. She said there are no more seats made made available to Icelandair and that I should go book using Alaska Air miles on Alaska Air. I even asked the agent to specifically check W class on the route I wanted, which has 6 W class openings. But she still said the same thing.

    Jared, is this correct?

    • If there is W available, they can book it. Not sure why you were told otherwise.

    • I would suggest trying again tomorrow morning. My experience was that the morning agents (= daytime in Iceland) were much more informed and capable than the afternoon ones (= night shift in Iceland). I wouldn’t believe it until you hear the same thing from a daytime agent.

      • I’m in California and got up at 4:30am and called right at 5am to get the morning shift, they were very helpful and knowledgeable about booking these flights.

  10. The agent flatly and plainly said that they simply cannot book anything to Hawaii.

  11. Another agent told me the same thing…..have they reached some sort of limit under their contract with Alaska?

    • Try something like LAX-SEA or SEA-ANC to find out whether they’re done booking Alaska. If they’re not, time for some CSR roulette.

  12. I hope they honor my tickets which haven’t processed yet. I don’t know what I’ll do with 60,000 saga points.

    • Interesting. I got PNR’s and ticket numbers in less than two hours.

      • I didn’t get any sort of confirmation email from Icelandair, but I looked up my PNR on and saw there that I had ticket numbers, etc. So I assume I’m good to go.

        • Ticket number generally means Good to Go. Does the Alaska PNR pull up the rezzy on their website?

          • I haven’t gotten email yet either, but my reservation pulls up on the Alaska site with the confirmation # I got off of checkmytrip using the confirmation # that Iceland Air gave me.

  13. Seems like I found a competent agent, but they said the rules they got from Alaska this week said that no open jaws are allowed.

  14. I, too, got charged $136 for ONT-SEA-ANC. Guess I’ll have to send them an email to fix it.

    On another note, availability opened up from LAX (better than ONT for me), so I tried to change it, but the agent said any changes (date/time, O/D, etc.) cost $160. I passed.

    • That seems to be consistent with the $80 per ticket change fee quoted to others.

      • The agent said $160 to change the round-trip (1 person). Isn’t that double what it should be?

        But on a more important note, I just emailed Iceland Air about the taxes, but the email address Jared provided came back as undeliverable. Any update, Jared?

        • I was told $80 per ticket – so for two tickets that would be $160. The email address worked just fine for me – copy and paste it.

        • Sorry, I read and replied to your comment wrong. Yes, I would expect it to be $80 per ticket, not per leg. You’re right.

          • Just got off the phone with Iceland Air Receptionist. She said they will stop booking these AS award tickets tom. Dont know how that will happen but if I was holding on to some points right now I would try to book a trip by the weekend.

          • This does not sound positive. I was unable to book today (after 3 agents) because they don’t allow open jaw anywhere (especially not at origin), nor can they book over 2 legs per way (BOOO).

          • The “two legs” (one connection) rule is an Alaska rule if I remember correctly, not an Iceland Air rule. If you’re going to participate in this deal you’ve got to know what to expect going in.

            As for stopping tomorrow? It could happen… I can’t wait for the threads of people wondering “what to do with 60,000 Saga Club Points!”

  15. I was able to book the following on 8/27 for four people next July:
    SAT>>SEA 3 Day Stopover

    All in F except the JNU>>ANC and ANC>>SEA legs. I did have to walk the agent through the connection in JNU since that is a change of flights/planes, and “approve” that two legs were in Y (which is what AS’s website had shown me on dummy bookings).

    The taxes charged came out to ~$150 per person which I challenged on the phone due to a follow-up commentor on one of Jared’s earlier posts on Icelandair, and the rep stated it was so high because of five legs we were flying. Thanks Jared for following up on the taxes, I just emailed them about a refund for the ones they should not have charged. Even if the taxes stick, ~$440/person for R/T from Texas to Alaska 2/3 in F is a good deal. If the portion of taxes are rebated, it will come to ~$375/person.

    While I know a lot of folks want Hawaii, there was still fair availability earlier this week from AS’s Texas locations (AUS, DFW, IAH, SAT) for next summer to Alaska (ANC, FAI, JNU). Using the one allowed stopover at SEA opens up a number of cities in the PAC NW too since AS award flights from Texas seem to be the afternoon ones, meaning it’s hard to connect in SEA (late evening) without using the stopover. As long as you can get back straight through on the return (early morning at destination>>SEA>>Texas late afternoon), these should still be bookable.

    In addition, for those with BA Avios, AS is a partner and the distance/leg based system makes 4500 Avios one-way redemptions a great way to get around Alaska. We did a day trip for 9K/person FAI>>BRW>>FAI on the summer solstice back in June.

  16. I booked round trip SFO-PVR, and the fees for a Mexico trip came out to $142.61 per person charged to my CC. Seems about right, and all of the fee/tax codes add up. Biggest was the Mexico intntl departure tax of $37. Lots of other small ones added in too.

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