Virgin Atlantic Saver award fares seem cheap—but are they actually?

If you’ve ever poked around award redemption fares for flights between the U.S. and Europe, chances are you’ve come across and checked out Virgin Atlantic. Virgin Atlantic is one of the best UK-based airlines, and I had an excellent experience flying with them when I took a flight from Boston to London this past January.

Virgin Atlantic is known for its Saver reward seats, which are one of the important highlights of its award redemption program. You can fly between the U.S. and Europe for as few as 6,000 points by taking advantage of these aforementioned Saver awards.

6,000 points is such a small amount of points that you might think that this is an excellent deal you should pounce upon immediately. However, when taking the return journey into consideration, the reality of Virgin Atlantic’s award redemption program comes into light.

While it is true that you can fly between the U.S. and Europe for just 6,000 points with Virgin Atlantic, there is a bit of a facade behind this promotion. A few months ago, Virgin Atlantic hiked the taxes & fees on all of their award redemptions, meaning that you’ll need to pay hundreds of dollars on top of your points to redeem your flight.

When taking into consideration the cash fare of the same exact flights, or the same itinerary but with a different airline, you might be wondering whether or not it’ll even be worth transferring any points to Virgin Atlantic.

The Outbound Leg: U.S. to Europe

For the outbound leg from the U.S. to Europe, the award redemptions are usually solid and aren’t too bad.

For example, to fly between Washington (IAD) and London (LHR), it will cost you 6,000 points + $110 in taxes. This is a prime example of the power of Saver fares, as you can easily transfer points from major credit card companies such as American Express, Capital One, and Chase to Virgin Atlantic, and it is a cakewalk to earn 6,000 points when taking advantage of credit card introductory bonuses and other point-earning methods.

When comparing this redemption to the cash fare, you would be paying $440 if you wanted to pay for this exact flight out-of-pocket. With the 6,000-point redemption, plus $110 in taxes & fees, you’d be attaining a value of 5.5 cents per point, which is a very solid redemption rate.

Whenever I’m looking to use my Chase points, I always seek to redeem my points for a minimum value of 1.5 cents per point, and 5.5 cents per point is an excellent value, especially for an economy seat redemption.

However, you may want to take into account that the price of the flight might be skewed because it is a one-way flight, and round-trip flights usually cost less than double the price of the one-way flight.

The Inbound Leg: Europe to the U.S.

As you’ll see on the inbound leg, the return flight to the U.S. will almost always be hit by higher taxes & fees than the outbound flight, as international flights to the U.S. are subject to a multitude of fees, such as an International Arrival Tax, U.S. Customs Fees, etc.

For example, the return leg from London (LHR) to Washington (IAD) will cost you 6,000 points + £222 in taxes & fees. At the current exchange rate of about £1 = $1.34, you’ll need to pay $298 in additional fees, on top of the 6,000 points you are already paying.

A one-way flight on the return leg itinerary would cost about $600 out-of-pocket, meaning that you’ll be attaining a value of about 5 cents per point, which still isn’t a bad redemption value for your points, despite the high amount of taxes & fees.

However, when combining the two redemption costs and comparing them to the cost of a round-trip itinerary, the value of the points redemption begins to decrease.

A comparable round-trip itinerary between Washington (IAD) and London (LHR) will cost $736 out-of-pocket. If you wanted to redeem points for both flight legs, you would need to pay a total of 12,000 points + $408 in taxes & fees, resulting in a redemption value of less than 3 cents per point.

While 3 cents per point still isn’t a bad redemption value, especially for economy award redemptions, paying $400 in taxes & fees seems extraordinarily high.

If you’re flexible and willing to divert to alternative airports, you might discover that it may not even be worth it to spend any points at all.

For example, if you can fly out of New York (JFK) instead of Washington (IAD), and you can fly into London Gatwick (LGW) instead of London Heathrow (LHR), you can book a round-trip itinerary with the budget airline Norse Atlantic UK for only $382 out-of-pocket.

Since you’ll need to pay 12,000 points + $408 in taxes & fees to redeem a round-trip itinerary with Virgin Atlantic, you won’t be attaining any value for your points if you’re willing to book an itinerary with Norse Atlantic UK instead.

Even though Norse Atlantic UK is a budget airline, they aren’t surprisingly too bad. They offer a free carry-on suitcase and a personal item for all fare classes, but they are known for being strict with making sure that your carry-on and personal item fit the size and weight restrictions.

While they don’t offer a complimentary meal or in-flight WiFi, Norse Atlantic UK does offer on-demand in-flight entertainment with screen, as well as in-seat power outlets to charge your devices.

When compared to other budget airlines such as PLAY, Norse Atlantic UK comes on top for the amenities they offer. PLAY doesn’t offer a complimentary carry-on or any in-flight entertainment, and the standard seats have 29 to 30 inches of legroom, as well as a lack of in-seat power outlets.

While you won’t have access to a complimentary meal, in-flight WiFi, or the service that Virgin Atlantic offers, Norse Atlantic UK isn’t a bad alternative if you’re flexible with your travel plans. Since the taxes & fees for Virgin Atlantic award redemptions are so expensive, it may not be worth redeeming any points if you can take advantage of alternative travel itineraries such as this one.

Final Remarks

While Virgin Atlantic Saver awards initially look like a dream deal, the reality is more nuanced. The outbound flight from the U.S. to Europe often delivers excellent cents-per-point value, but the return leg is where high taxes and fees cut into that value. A round-trip redemption can still be worthwhile in some cases, but when you factor in alternative carriers like Norse Atlantic UK, you may find that paying cash can be cheaper than using points.

For travelers looking to maximize their rewards, Virgin Atlantic redemptions are best used strategically. Think one-way flights to Europe, or niche routes where cash fares are disproportionately high. Always compare the total cash cost, taxes, and fees before transferring your hard-earned credit card points.