With the formation and expansion of airline alliances in the s and s, flyers saw their opportunities to earn and redeem miles across different carriers dramatically increase as well. Star Alliance , of which United is a member, became the first of these organizations when it was formed in May All this means that flyers should be able to earn miles in their two or three target programs on nearly every major flight they take.
On the redemption side, it means being able to use their miles to fly to hundreds, if not thousands, of destinations that might otherwise have been inaccessible. Airline mergers have occurred since almost the beginning of commercial aviation. But in the last 18 years or so, the number of mergers and the size of the airlines participating have resulted in unprecedented consolidation within the industry and further standardization of frequent flyer programs into the forms we know today. Each of these mergers has represented both benefits and costs to consumers.
On the positive side, mergers included the integration of mileage programs so people could combine their various accounts. In some cases, this opened up new awards to flyers as their miles became part of new programs and usable on new alliances. On the negative side, mergers produced a lot of uncertainty mile-wise. Airlines could switch alliances. Those shifts meant that flyers who had diligently accrued miles in a certain mileage program in the hopes of redeeming awards on specific partners either had to book their awards within a very limited time frame or rethink their entire strategy.
Not only that, but flyers had to learn new award rules and charts based on those of the mileage program that remained standing after a merger. With each consolidation came a frenzy of mileage activity that also sent award space into a tailspin, which probably created some of the increasing scarcity of saver-level awards at least pre-pandemic.
The disappearance of an airline and its mileage program also usually meant the changeover or outright cancellation of associated credit card products. The Virgin America family of cobranded cards was closed in January Although fewer choices generally mean worse options for consumers, the offerings have remained fairly competitive and consistent in the case of airline credit cards. We still see some great bonuses and benefits being offered. In , America West established a mileage program called FlightFund , which issued miles based on fare price rather than miles flown.
FlightFund went the way of the dodo in after the airline merged with US Airways. However, its FlightFund formula was the one that both JetBlue and Southwest replicated with their mileage programs in the s. In , the U. S legacy carriers decided to pursue a similar path.
Delta and United announced that their respective mileage programs would become revenue-based the next year. American followed suit in The airline world has not been the same since.
Now, instead of earning miles based on the distances flown, members of most frequent flyer programs earn between 5 and 11 miles per dollar spent. The exact number is based on the type of fare and elite status level. Partner mileage earning generally remains based on the fare class purchased discount economy, full-fare economy, discount business class, full-fare business class, etc. Earning elite-qualifying miles and segments on American Airlines and Delta remains based on distance or segments flown.
Meanwhile, United has adopted an entirely revenue-based elite system where you must earn both Premier Qualifying Points based on spending and Premier Qualifying Flights based on actual travel, though distance is no longer a factor. Flying Blue also dropped its award charts soon after and began dynamically pricing awards based on paid airfare, though this structure remains illogical at best. While the implications of these overhauls are complicated, there is one key takeaway: Airlines are rewarding travelers who spend rather than those who merely fly.
That said, airlines worldwide relaxed their elite status requirements in and due to the pandemic, so it might be a while before they bounce back to their previous mileage and flight demands. Beyond predicating their mileage programs on spending, the legacy carriers have also significantly devalued their award charts over the years by repeatedly raising mileage requirements.
Delta began the trend, pulling its award charts in and beginning to price awards dynamically based on airfares. That means some economy awards are cheaper , but premium awards have shot up in price again and again … and again. Unfortunately, the trend has continued during the pandemic. United raised partner award prices in April and then again in October. That same month, Delta hiked up prices on partner awards with no notice.
For now, both American and Alaska Airlines still publish zone-based award redemption charts with fixed mileage levels for awards in various classes between specific regions … after raising those mileage levels multiple times. Even Southwest has upped its mileage redemption rates multiple times in the last several years, most recently last April. And foreign carriers, including Singapore Airlines , have been doing the same lately.
Related: The 7 best ways to redeem airline miles without flying. Now for one non-mileage type of devaluation. Luckily, U. First, airlines leveraged their mileage programs to underwrite their financing, so there is no doubt that they will continue to regard frequent flyer miles as key not only to their survival but as major assets for any turbulence to come.
Several airlines, including United and Delta, sold massive quantities of miles to their credit card issuers to generate cash when travel demand dropped in the second and third quarters of That has resulted in some jaw-dropping credit card bonuses and spending promotions so far, and consumers can expect those to continue.
Related: How much money do loyalty programs make airlines? Finally, if you were a super-triple-platinum-diamond-crusted elite in the past, this is the exact right moment to consider whether you want to hop back on the elite-status hamster wheel with your airline of choice or to branch out and explore new options. In the four decades since the inception of modern frequent flyer programs, airline miles have become markedly more complicated.
Many of the developments have been positive, including the panoply of perks-driven, cobranded credit cards now available for all the major airlines. At the same time, however, consumers have faced a constantly shifting skyscape of labyrinthine earning and redemption rules, an elite-status system that keeps pushing qualification thresholds higher and higher, and increasing restrictions on how and where consumers can use their miles. As is often the case, though, adversity also means opportunity for individuals who take the time to learn about mileage programs and master their complexities.
Staying on top of ongoing developments, adjusting your strategy and maximizing your ability to earn and redeem miles make it still possible to reap tremendous value and benefits from frequent flyer miles as we see where airline programs evolve. Terms Apply. Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser.
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Reminder: The first national park free entry day of the year is next week. Earn 3X Miles on Delta purchases and purchases made directly with hotels. Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U. Earn 1X Miles on all other eligible purchases. Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Here's a look at how each stacks up in Budget carrier Spirit Airlines' Free Spirit loyalty program rounds out the top 10 with an overall WalletHub score of Sun Country Airlines has plenty of room for improvement as well, earning an overall WalletHub score of just Low-cost carrier Southwest Airlines is among the five major U.
JetBlue boasts the lowest markup on purchased miles at Only one other carrier offers loyalty program members more rewards value than Frontier Airlines. Nonetheless, HawaiianMiles ranks just fifth among the 10 carriers that were examined. The program is held back by a American Airlines' AAdvantage ranks fourth overall and offers the fourth-highest number of partnerships among the 10 carriers WalletHub looked at with 18 total.
Meanwhile, American also has the highest markup on miles that are purchased rather than earned at Delta Air Lines' SkyMiles program sees its five-year run atop the rankings come to an end in Nonetheless, SkyMiles ranks first for having the most additional features and secures an average flyer WalletHub score of Alaska Airlines' Mileage Plan ranks second in , faring the best for redemption policies and partner coverage. With an overall WalletHub score of MileagePlus is also the best for frequent flyer partnerships, boasting 35 total, which is 12 more than both Delta Air Lines and Alaska Airlines.
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