AAdvantage Members Redeemed $886 Million in Free Flights This Year. How Much Did You Get?
Update: Some offers mentioned below are no longer available. View the current offers here.
On Friday morning, American Airlines announced its financial results for the first quarter of 2019. It wasn't a great quarter, and it's not getting better anytime soon. Airline management warned of potential $1 billion reduction in earnings due to the 737 MAX grounding and rising fuel prices.
One of the bright spots pointed out by airline management was "higher loyalty revenue." But that's not (just) from selling more miles to airline members and credit card issuers. Due to a revenue recognition change effective January 1, 2018, airlines now actually want you to use your miles. That's because airlines have to defer revenue when miles are earned, whether through flying or earned through credit cards. This revenue can't be recognized by the airline until "mileage credits are redeemed and transportation is provided."
That's why airlines are working to fill airplane seats with passengers paying with miles, if they can't fill them with cash-paying passengers. We've seen new mileage initiatives from most domestic airlines:
- American Airlines' Economy Web Specials (with 39 routes pricing at 5,000 miles each way last time we checked)
- Delta's constant award flash sales
- United's new 5,000-mile domestic award flights
- Alaska's recent award flash sale from 5,000 miles one-way
- JetBlue's recent award flash sale with flights from 400 points each way
And these efforts are showing. In the third quarter (July-September) and fourth quarter (October-December) of 2018, AA saw double-digit percentage growth in loyalty revenue travel. In the first quarter of 2019, American Airlines recognized $886 million in revenue from award redemptions. That's a record since the airline has started using this new revenue-recognition procedure.
But it's not just the revenue number that's increasing. The percentage of total passenger revenue that's from award travel has steadily ticked upward. In 2017, award travel made up 7.6% of total passenger revenue. In 2018, that number was up to 7.9%. For the first three months of 2019, as much as 9.2% of total passengers revenue is from award travel -- but that includes the seasonal bump usually seen in Q1.
| Quarter | Loyalty revenue travel (millions of dollars) | Year-over-year increase | % of total passenger revenue (rolling 12 months) |
|---|---|---|---|
Q4 2017 | 728 | 7.6% | |
Q1 2018 | 850 | 6.0% | 7.6% |
Q2 2018 | 797 | 5.8% | 7.7% |
Q3 2018 | 771 | 10.8% | 7.8% |
Q4 2018 | 801 | 10.0% | 7.9% |
Q1 2019 | 886 | 4.2% | 8.0% |
Hopefully you were part of that record-setting $886 million in free flights flown in the first three months of 2019. Even if not, it's not too late to get into the game that airlines now want you to play more than ever. If you're looking for some inspiration on how to use your AA miles, here are some of my favorite ways to redeem AAdvantage miles:
Economy Web Specials: American Airlines' newest mileage discount program seems to be a step toward dynamic mileage redemptions, but it's also a way to get domestic award flights from 5,000 miles each way, Caribbean award flights from 5,000 miles each way and discounted awards to Hawaii, Europe and South America.
Business class awards to Japan: Another sweet spot in AA's award chart is business class from the US to Japan for just 60,000 miles each way in business class. American Airlines has a solid business class product on routes to Japan, but you could also redeem AAdvantage miles for Japan Airlines business class instead.
Business class awards on the world's best business class product: For the TPG Awards, we put the world's best airlines to the test to figure out which was the top. The winner: American Airlines partner Qatar with its Qsuite product. Here's where Qsuite is flying in the US in 2019 -- including how to search award availability. It'll cost 70,000 miles one-way from the US and the Middle East (e.g. Qatar, Egypt, Saudi Arabia, UAE) or Indian Subcontinent (e.g. India, Sri Lanka, Maldives) -- or 75,000 miles each way between the US and anywhere in Africa (e.g. Seychelles, Mauritius, South Africa).
First class on Etihad's Apartments: If only first class will do -- and you can find award availability -- you can redeem AAdvantage miles for one of the best first class products in the sky: Etihad Apartments. In testing for the inaugural TPG Awards, Etihad Apartments ranked #2 in the world -- falling just short of Emirates first class. The world's second-best first class product doesn't come cheap at 115,000 miles each way, but that's reasonable compared to some award rates on AA flights.
If you need more miles to make your redemption goals a reality, there's a number of credit cards with sign-up bonuses:
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard®: Earn 50,000 bonus miles after spending $2,500 on purchases in the first three months of account opening ($99 annual fee; waived for the first 12 months).
- CitiBusiness® / AAdvantage® Platinum Select® Mastercard®: 65,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening. And again, the $99 annual fee is waived for the first 12 months.
- Citi® / AAdvantage® Executive World Elite Mastercard®: 50,000 mile sign-up bonus after spending $5,000 on purchases in the first three months of account opening.
- The American Airlines AAdvantage MileUp℠ Card doesn't have any annual fee and earns 2x miles on grocery stores and eligible AA purchases, but it's only offering a sign-up bonus of 10,000 miles plus a $50 statement credit after spending $500 on purchases in the first three months.
The information for the Citi AAdvantage Platinum card and CitiBusiness AAdvantage Platinum card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.