Death of the Mileage Run?

Two days ago American Airlines announced that starting on August 1, 2016 their frequent flyer program, AAdvantage, will become revenue-based instead of mileage-based. This is a move that follows the other major carriers, Delta and United, who have done the same in recent history. It is definitely a big move as AA is the largest domestic carrier in the US and now all three of the top domestic carriers have similar rules.

With these major carriers imposing these changes, it seems that there is another nail in the coffin of the mileage run, a practice of flying to distant locations for cheap fares in order to gain miles for use at a later time. With revenue-based earning, the price of the ticket matters a lot more than the distance flown.

So what does this mean more specifically? Here is an example of a flight from New York’s JFK airport to London-Heathrow.Screen Shot 2016-06-08 at 9.16.27 PMScreen Shot 2016-06-08 at 9.16.33 PM

 

Under the former system, 100% of the miles flown would be added to the purchaser’s account in any Economy class, as shown below. Since the two airports are 3,452 miles apart (as calculated by TravelMath), the total miles earned would be 3,452 * 2 = 6,904.

Screen Shot 2016-06-08 at 9.19.53 PM

According to American Airlines’ new rules, however, for that same trip costing  $881, the number is significantly less. First of all, only the “Base Fare” and “Carrier-imposed Fees” count towards mileage determination. Screen Shot 2016-06-08 at 9.18.12 PM

So, only the $195 + $458 count, totaling $653. With the example shared on their announcement website, a low-level member of AAdvantage (read: most of us) would earn 5 miles/dollar. That totals to a whopping 653 * 5 = 3,265 miles, not even half of what was earned before.Screen Shot 2016-06-08 at 9.22.34 PM

So, with this information in mind, it’s important to consider a) if earning points from flying is actually worthwhile in the future and b) perhaps we should put our miles on foreign carriers to get more leverage from them in the future.

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