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American Airlines raises the cost to purchase miles without any notice

Jan. 20, 2022
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3 min read
American Airlines LaGuardia Airport Western Concourse New Admira
American Airlines raises the cost to purchase miles without any notice
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If you're looking to top off your American Airlines AAdvantage account, expect to pay more per mile.

The Fort Worth-based carrier raised the cost to purchase or gift miles on Thursday by nearly 20%, from 2.95 cents per mile to 3.5 cents per mile. The airline confirmed the price increase to TPG with the following statement: "Our programs and offers are subject to reviews, and changes are implemented accordingly to ensure we remain competitive in an ever-changing market."

The new price to purchase miles will be applied before any discounts or promotions, which American runs multiple times per year. For instance, the airline's latest offer includes an up to 35% discount on purchased or gifted miles, bringing the cost per mile down from 3.5 cents to 2.4 cents (including all taxes and fees).

Old vs. new cost to purchase miles (Screenshot courtesy of American Airlines)

Note that while American is raising the cost to purchase or gift miles, it isn't (currently) changing the cost to transfer miles between accounts, which remains at 1.5 cents apiece.

For American, raising the cost to purchase miles will directly increase the program's bottom line. Of course, mileage sales account for only a fraction of the program's revenue, which is largely supported by bulk purchases of miles from cobranded credit card issuers and other partners.

Ultimately, this move might be a way for American to generate more revenue from its biggest partners (Barclays and Citi).

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Perhaps most interestingly, American's move to raise the cost of miles comes just weeks after the airline's "deal of the year" ended. Flyers were able to use American's SimplyMiles platform to purchase miles for less than half a cent apiece. Many savvy travelers took advantage of this promotion, which American honored in its entirety.

Related: When does it make sense to buy points and miles?

Either way, raising the cost of miles stings for flyers who've been used to paying 2.95 cents per mile in the past. Plus, the change was made without any notice, so those who've been eyeing a mileage purchase will now need to pay up.

Of course, we'll have to wait and see if American adjusts its frequent promotions to account for the increased cost to purchase miles. If it does (by increasing the discount on purchased miles), then this change could be a wash for flyers.

Note that accounts under 30 days old are not eligible to purchase miles. Plus, mileage purchases are typically capped at 150,000 miles in a calendar year, though some promotions offer bonus miles that allow you to acquire more than the cap.

As always, you should only buy miles if you have a specific high-value redemption in mind. However, if you don’t need miles immediately, you may want to wait for a better buy miles promotion — or consider signing up for a cobranded credit card with an elevated sign-up bonus.

Featured image by ZACH GRIFF/THE POINTS GUY
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Some may have trouble using Uber and other dining credits
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  • 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.
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  • $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.
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  • $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.
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