Airline miles are a type of reward currency offered by airlines and credit cards. They are also known as frequent flyer miles or travel points. The more you spend on a ticket or on your credit card, the more miles you accumulate, which can then be redeemed for free tickets or other rewards.
Airline miles are not limited to actual miles flown, and they work like any other rewards program. You can earn miles by signing up for an airline's loyalty program or by signing up for a credit card that offers reward miles.
Credit card miles can be earned in two ways: by signing up for a service through the airline or by signing up for a credit card that offers reward miles. Some credit cards work on any airline, while others are specific to certain airlines.
Redeeming airline miles is usually simple. You can log in to your account on the airline's website and search for a flight, which will show you the cost in miles and dollars. You can then choose to pay with miles during the checkout process.
Characteristics | Values |
---|---|
Type of reward | Travel reward |
How to earn | Through an airline or a travel credit card issuer |
How to redeem | Through an airline's website or a credit card's redemption portal |
Best airlines for rewards | Hawaiian Airlines, Delta Airlines |
What You'll Learn
Airline miles are a type of reward currency
At one time, miles were earned strictly from flying, but these days, the options for earning miles are nearly endless. From shopping portals to dining to using a co-branded credit card, it’s easier than ever to load up on miles.
Using miles to redeem an award ticket isn’t 100% free, though. You’ll still need to pay some cash, and this amount will vary significantly depending on the flight you choose. These costs cover taxes and fees, which you also pay when you purchase airfare; the cost just gets rolled into the final price of your ticket.
Some of these costs are taxes set by the government of the country from which you are departing. Other fees are surcharges and operational expenses that may be imposed by the airline and airport through which you are travelling.
The value of an individual airline mile can vary drastically even within that airline itself. You can typically learn more about an airline’s mileage redemption rates by checking the loyalty program section on the carrier's website.
Generally, airline loyalty programs implement some type of award chart or standard for award redemptions. Some airlines, for example, have zone-based awards. With this type of award, your flight will be priced by defined regions.
Other airlines use a dynamically priced system for award flight redemptions, which means that the number of required miles may fluctuate based on demand, just like cash prices for flights. A good example of this type of award pricing is the Southwest Rapid Rewards program, where award prices reflect the current cash rate.
As a general rule, you’ll get the best value out of your airline miles by booking upper-class seats that are more expensive if paid in cash. For instance, a round-trip plane ticket to Asia could easily cost more than $5,000 in business class on most airlines. If you find a good mileage deal, you could book that business class flight for less than 150,000 airline miles and only pay the taxes and fees in cash – which can be as low as $5.60 one way on some airlines. That’s an incredible value.
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You can earn miles by flying or spending on credit cards
Airline miles are a type of "currency" that can be used to get free flights. At one time, miles were earned strictly from flying, but nowadays, there are many ways to earn miles, including through the use of co-branded credit cards.
Earning Miles by Flying
The most straightforward way to earn miles is by buying a plane ticket and flying on your favourite airline. The number of miles you earn will depend on various factors, including the airline, the type of seat you book, the distance flown, and the cost of the ticket.
Earning Miles with a Credit Card
You can also earn miles by spending on a credit card. There are two types of credit cards that can help you do this: co-branded cards affiliated with an airline, and more general rewards cards that offer an assortment of awards, including airline miles.
Co-branded Credit Cards
Co-branded credit cards are affiliated with a specific airline and offer rewards that can be redeemed for flights with that airline or its partners. For example, the Delta SkyMiles® Gold American Express Card offers 2X miles on purchases made with Delta, at restaurants worldwide, and at U.S. supermarkets, and 1X miles on all other eligible purchases.
General Rewards Credit Cards
General rewards credit cards offer a more flexible way to earn miles, as they typically allow you to redeem travel rewards with numerous airline and hotel partners. For example, the Chase Sapphire Preferred® Card offers 5X points on travel booked through Chase Ultimate Rewards, 3X points on dining, select streaming services, and online grocery purchases, 2X points on other travel purchases, and 1X points on all other purchases.
Maximising Your Earnings
To maximise your earnings, it's a good idea to have both types of cards in your portfolio. You can use the co-branded card for all purchases related to the affiliated airline, and the general rewards card for all other purchases. Additionally, keep an eye out for limited-time offers and welcome bonuses, which can help you accumulate miles quickly.
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Miles can be redeemed for flights or other rewards
Airline miles can be redeemed for flights, hotel stays, car rentals, magazine subscriptions, merchandise, flight upgrades, and more. However, redeeming airline miles for flights is generally the best way to get the most value out of your miles.
The value of airline miles varies depending on the airline and the flight. According to NerdWallet's analysis, miles from major airlines are worth about 0.8 to 2 cents each. Southwest Airlines, for example, has a system where your points have a mostly fixed value: the number of points you need to book a flight directly mirrors the price of the cash fare. Other airlines, like American, use an award chart to determine how many miles you need for a flight, typically based on the regions you're flying from and to.
When redeeming airline miles for flights, it's important to do the math to ensure you're getting a good deal. Divide the cash price of the flight by the number of points needed for an award flight, then multiply that value by 100 to get the value per point in cents. Compare this value against valuations to make sure you're getting a good deal.
In addition to redeeming airline miles for flights, some airline miles programs also let you cash in miles with hotel partners. For example, American Airlines lets you use AAdvantage miles to pay for stays at over 150,000 properties worldwide. However, it's worth noting that it's generally harder to get a good value per mile when redeeming airline miles for hotel stays or other travel rewards.
Airline miles can also be redeemed for rental cars, cruises, vacation packages, airline lounge memberships, live events, charitable donations, merchandise, gift cards, and magazine subscriptions. However, these options typically give you a lower value per point, so they should not be your first choice for redeeming airline miles.
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Miles have different values depending on the airline
The value of miles varies depending on the airline and the flight. This is because each airline has its own loyalty program with different rules and reward systems. For example, Southwest Airlines has a system where the number of points needed to book a flight directly mirrors the price of the cash fare. On the other hand, American Airlines uses an award chart to determine the number of miles needed for a flight, which is typically based on the regions you are flying from and to.
Additionally, the way you earn miles can also impact their value. For instance, miles earned through an airline loyalty program may be worth more than miles earned through a co-branded credit card. Moreover, some airlines offer "status miles" which cannot be used for flights but can earn you better perks with that airline. Furthermore, the way you redeem your miles can also affect their value. Generally, you get the best value when redeeming miles for flights, especially for upper-class seats. However, some airlines allow you to redeem miles for other things like hotel stays, car rentals, magazine subscriptions, or merchandise, but these options usually give you a lower value per mile.
It's also worth noting that the value of miles can fluctuate even within the same airline. For instance, you may get a higher value for your miles when booking international flights in business or first class compared to redeeming them for a domestic economy flight.
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You can earn miles through airline loyalty programs
Airline loyalty programs are a type of customer retention and reward scheme operated by airlines. These programs allow travellers to collect loyalty points, often called 'miles', for purchases. These miles can then be redeemed for air travel, upgrades, hotel stays, car rentals, and more.
The first major airline loyalty program was pioneered by American Airlines with their AAdvantage program in 1981. Today, almost every airline offers some form of loyalty scheme.
- Fly with your preferred airline: The most straightforward way to earn miles is by purchasing a plane ticket and flying with your favourite airline. The number of miles you earn will vary by airline and flight and will typically depend on the distance flown, the class of travel, and the cost of the flight.
- Credit cards: Many airlines offer co-branded credit cards that reward you with miles for every dollar you spend. These cards often provide bonus miles for purchases made with the airline or its partners. For example, the Alaska Airlines Visa Signature card allows you to earn miles for everyday purchases and when booking with hotel partners.
- Credit card sign-up bonuses: By signing up for a new credit card, you can take advantage of introductory offers that provide a significant number of bonus miles when you meet a minimum purchase requirement.
- Shopping portals: Many airlines have online shopping portals where you can earn bonus miles for making purchases with partner retailers. For instance, Alaska Airlines' shopping portal offers miles for signing up with Blue Apron and miles per dollar spent at Macy's, Lenovo, and Under Armour.
- Dining programs: Airline dining programs allow you to earn miles when you eat at participating restaurants and pay with a linked credit or debit card.
- Hotel stays: Some airlines have partnerships with hotels, allowing you to earn miles when you book a stay at a partner hotel. For example, American Airlines' AAdvantage program allows you to earn miles for stays at various hotel brands.
- Car rentals: Similar to hotel stays, you can earn miles when renting cars from partner companies.
- Cruises: Certain airlines, like American Airlines, let you earn and redeem miles for cruise vacations.
- Other travel expenses: Airline loyalty programs often have partnerships with car rental companies, hotel brands, and cruise lines, allowing you to earn miles on a variety of travel expenses beyond just airfare.
By participating in airline loyalty programs and utilizing the various methods to earn miles, you can accumulate significant benefits, including free flights, upgrades, and other exclusive rewards.
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Frequently asked questions
Airline miles are a type of reward or loyalty points earned for doing business with a specific airline. They can be redeemed for flights, hotel stays, car rentals, magazine subscriptions, merchandise, etc.
You can earn airline miles by signing up for an airline's loyalty program and then buying a flight on that airline. You can also earn miles by spending on co-branded airline credit cards or general travel rewards credit cards.
You can redeem your airline miles by logging into your account on the airline's website and searching for a flight. You can then choose to pay using your miles.
To maximise your airline miles, try to book flights in the airline alliance, which will allow you to redeem miles for flights with partner airlines. Also, consider using your miles for premium cabins as these seats are usually very expensive when paid in cash.