Is There a Limit to Icelandair Awards Program Fees?

[Luca314]

I have been saving for a while, getting frequent flyer miles with Icelandair donated from family, so I can make the trip to visit family in Scandinavia. I have been a loyal passenger on Icelandair for more than 10 years. Not because they are great, but because they are a cheap and easy airline to fly with to Scandinavia.

But when I tried to book 3 "awards tickets" through their online website, I was quoted $465 in fees and surcharges for EACH ticket! When I bought a 4th ticket at regular price, the fees and surcharges are listed as $86. For my award booking I’m being charged more than 5 times the posted rate of $86 in fees, than if I bought the same ticket on Icelandair's website.

The airport fees and fuel surcharges quoted to me is over 56 % of a full priced ticket for the same dates ($824 total for a regular ticket). I realized that nowhere on the Icelandair website it states that tickets are free, but I fail to see how an award program can charge more than half the price of a full priced ticket.

I sent them a letter of complaint to their North American and Icelandic offices and to 3 different emails, but so far no response from them.

My question is this. Can the airlines just charge whatever they want for fees for an awards ticket? Is there any limit to how much they can charge?

Needless to say, this will be my last Icelandair trip. I'm switching to other carriers.