Urgent: Mileage Inflation Means It's Time to Cash In Now!

Let me put the bottom line right up top: Your airline miles are being devalued with the passage of time.  Never mind that airlines promised you a free domestic flight for 25,000 miles.  It’s getting more and more difficult to find a flight for 25,000 miles.  And we’re moving toward the day when it’ll take 40,000 or more miles for a freebie.  And even then there may be a fuel or booking charge. 

That’s why it’s time for you to start cashing in your unused airline miles. 

The cost of flying has gone up steadily since the price of oil began moving skyward, and several major airlines are rapidly raising the bar you have to jump over in order to snare a freebie.

To wit:

--A couple of years ago, many major airlines introduced a 50,000-mile award level that allowed you to cash in for a domestic round-trip ticket even if there were no more designated award seats available. 

--This past week, Delta introduced a third tier for award tickets, joining Alaska which did the same three weeks ago.  Beginning in September, Delta frequent flyers might be able to claim a free, domestic, mainland, coach ticket for 25,000 miles.  They stand a better chance if they’re willing to give up 40,000 miles.  But for 60,000 miles, a passenger is guaranteed an award seat as long as there’s a seat available on a flight—the so-called “last seat” option.  Mileage inflation isn’t just hitting domestic award tickes.  Want the last first-class seat available on a flight from North America to Asia?  You’ll have to pony up a whopping 370,000 miles.

--Oh, and those free tickets may not be entirely free.  Beginning Aug. 15^th, you’ll pay a $25 fuel surcharge for your Delta domestic award ticket; international award tickets require $50, and that includes flights to the Caribbean.  US Airways is charging an award “booking fee” of $25 for domestic tickets, $35 for flights to Mexico, and $50 for flights to Hawaii and international destinations. 

--On American Airlines, you’ll pay $50 to book an award ticket within 21 days of your desired date of travel.  If you’re looking for an award ticket within seven days of travel, be ready to fork out $100.  Want to change your routing after an award ticket has been issued?  That’s another $150.

--This week Continental also announced a twist that doesn’t do any favors to many passengers who are saving up miles for a Continental award ticket.  Right now you can surrender 50,000 miles to capture a domestic ticket if there’s a “last seat” available; as of Sept. 3, even that award tier, called EasyPass, will be capacity controlled unless you’re a member of Continental’s “elite” level of frequent flier program.

So the lesson couldn’t be clearer: Start using your miles now.  And while 25,000 miles might still get you a domestic freebie, those days may not be with us much longer.  Remember, you can book an award ticket months out.  If you have firm travel plans months away, book now before additional fees and higher mileage requirements devalue your mileage saving account further.