US Airways frequent-flier change: Short flights earn fewer miles

Posted by stephen on February 14, 2008

US Airways will end its practice of awarding at least 500 miles per flight, something frequent-flier critics will likely point to as what they say is yet another sign of the diminishing value of the airline loyalty programs, according to http://blogs.usatoday.com/sky/. Of all the U.S. carriers that use mileage-based loyalty programs, US Airways becomes the first to end the 500-mile-per-flight minimum on all fares.

The change will also affect miles accrued toward earning elite frequent-flier status, US Airways spokesman Phil Gee tells Today in the Sky.

Previously, all flights on US Airways earned at least 500 miles -– regardless of the actual length. For example, a flight on the popular business-travel route between New York LaGuardia and Boston will earn US Airways’ frequent fliers only about 185 miles each way once the new policy takes effect on March 1. Currently, that flight earns the airline’s Dividend Miles customers 500 miles each way. The new rule also will be applied to partner flights on which US Airways miles can be earned.

And in another change that’s not likely to sit well with US Airways’ frequent fliers, the carrier says in an e-mail that “members redeeming miles for award travel online within 14-days of departure will be assessed a quick ticketing fee of $50 per ticket.” Unlike the minimum-mileage change, however, that move brings US Airways policy in line with those at several other big carriers. Additionally, the US Airways’ Chairman’s and Platinum Preferred elite frequent-flier members will be exempt from the fee.

As for US Airways’ elimination of the 500-mile minimum, it’s not a gargantuan change but it is likely to create a buzz among frequent-fliers. Fliers were voicing displeasure this morning at frequent-flier website flyertalk.com. “Seriously, I can’t believe this,” one person posts on the flyertalk forums. “Among stupid decisions that US (Airways’) management has made, this ranks right up near the top,” writes another. Still, at least one person came to US Airways’ defense, writing: “The reality is that airlines are for profit and they are perfectly entitled to do things that they feel will generate more profit.”

Both customers and industry observers certainly will watch to see if rivals match US Airways’ minimum-mileage move. As it stands now, the change have the biggest impact on routes that are among US Airways’ most popular. Popular routes that used to earn customers 1,000 miles round trip will now earn less –- much less in some cases. New York LaGuardia-Boston will now earn roughly 370 miles round trip. Other routes seeing big drop-offs include: Charlotte-Atlanta (now about 460 miles); Los Angeles-Las Vegas (470 miles round trip); Philadelphia-Pittsburgh (about 540 miles); New York LaGuardia-Richmond, Va. (about 580 miles); and Phoenix-Los Angeles (about 740 miles).

And in markets where customers are not strongly loyal to US Airways, the reduced mileage earning could tempt customers to fly rivals with more robust options. Between Los Angeles and Las Vegas, for example, a US Airways customer who flies that route 10 times a year earns 10,000 miles under the current system but only 4,700 under the new rules. Passengers taking most flights on other big airlines could still earn 10,000 miles on that route, provided US Airways’ changes are not matched. Or, a passenger flying Southwest on that same route would earn 20 points, four more than the 16 needed to earn a free ticket on that carrier.

Another example comes on the Richmond-New York JFK route. A customer with frequent business in New York who switches to JetBlue’s JFK flights out of Richmond would earn 80 points for 10 round-trip fares booked on JetBlue’s website. JetBlue’s free tickets start at 100 points, though points from fares not bought with an American Express card have a lifespan of one year.