Now live: Etihad Guest makes changes to award redemptions, elite status and more

Etihad Airways has implemented a wide range of changes to its Etihad Guest loyalty program. Under the new system, there are some winners and losers.

Etihad Guest is an under-the-radar frequent flyer program, and customers can usually find valuable partner sweet spots on its published award charts. For example, some TPG staffers prefer to book American Airlines flights through Etihad as they've found award redemptions for a fraction of the miles American was charging.

Here are the changes this airline loyalty program has made.

Etihad Guest 2024 loyalty program changes

In positive news, the cost of economy- and business-class award redemptions on some popular routes has decreased. Economy-class redemptions will start at 5,000 miles, and business-class redemptions at 15,000 miles, per Etihad's website.

Pricing from the U.S. to Abu Dhabi remains the same at the time of publication, starting at 60,000 miles in economy and 120,000 miles in business class each way. But, because some airlines use dynamic pricing, you can sometimes save money by booking business-class tickets through Etihad; other international tickets can be much higher than this.

Another exciting development? Customers can now redeem miles to upgrade to Etihad's famous A380 Residence between Abu Dhabi International Airport (AUH) and London's Heathrow Airport (LHR) or New York City's John F. Kennedy International Airport (JFK). Upgrade prices and rules have not yet been announced.

The not-so-good news is that Etihad Guest miles now expire after 18 months and will only be extended if you take a flight operated by Etihad or a partner airline within that time frame. This is far more restrictive than other programs, which allow any earning activity (such as a small shopping portal purchase or purchasing 1,000 miles) to extend the mileage expiration.

New redemption cancellation charges are likely to also be unpopular, with a 25% mileage penalty when canceling an Etihad Guest redemption more than 21 days before departure, up to a steep 75% penalty for cancellations within seven days of departure. Again, this is much more restrictive than competing programs; for instance, Qatar Airways Privilege Club charges just $25 to change or cancel a redemption up to 24 hours before departure.

Related: How to avoid airline change and cancellation fees

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Etihad Guest elite status changes

Elite status members will continue to receive benefits like priority check-in and boarding, complimentary Wi-Fi, and additional mileage earnings. However, Etihad Guest members no longer need to earn tier segments to earn elite status; instead, tier miles are now the sole earning metric for the airline. If you have any remaining eligible tier segments, they will be converted to tier miles.

Elite members can now choose different perks: Core, Custom and Beyond. In addition to the Core perks available at each elite status tier, the number of Custom benefits will increase as your status level increases. Silver members can choose two Custom perks, Gold members can choose four and Platinum members can choose five.

Silver members who earn 20,000 tier miles in a membership year (10,000 from flying) can choose two of the following:

• Lounge access in Abu Dhabi
• Free seat selection
• 25% discount on baggage fees
• Two carbon offset vouchers

Gold members (earning 40,000 tier miles with 20,000 from flying) can choose four of the following Custom benefits:

• Lounge access (with one guest) in Abu Dhabi
• One extra checked bag
• Two free chauffeur services within the United Arab Emirates
• Free chauffeur service in the UAE for GuestSeats in business or first class
• One free refund on a GuestSeat booking
• Two free home check-ins within the UAE
• Four carbon offset vouchers

Platinum members who earn 100,000 tier miles (with a minimum of 40,000 tier miles from flying) can choose five of the following benefits:

• First-class lounge access (with one guest) in Abu Dhabi
• One extra checked bag
• Two upgrades on eligible routes
• Extra-legroom seats for up to four guests
• Move to an earlier flight the same day for free
• Two free chauffeur services within the UAE
• Two free refunds on a GuestSeat booking
• Four free home check-ins within the UAE
• Six carbon offset vouchers

A brand-new status tier, Diamond, has also been introduced for members who spend at least $150,000 with Etihad Airways in 12 months. The benefits of this new tier are still to be announced.

As for Beyond perks, these benefits are exclusively available to Gold and Platinum members.

Gold members who earn 75,000 tier miles can gift the following Beyond benefits to family and friends:

• Two business-class lounge passes
• Silver tier status nomination
• 10,000 bonus Etihad Guest miles

Platinum members who earn 175,000 miles can also gift the following Beyond benefits to family and friends:

• Three business-class lounge passes
• Three passes for priority check-in, boarding and baggage
• 20,000 bonus Etihad Guest miles

Related: Etihad brings flagship Airbus A380 — with private onboard Residence — back to the US

Bottom line

Overall, the Etihad Guest loyalty program has implemented positive and negative changes. Hopefully, award redemptions will be reduced more, though we haven't seen anything significant at the time of publication.

Although the rates have yet to be revealed and may be steep, being able to redeem miles to upgrade to Etihad's famous A380 Residence is an exciting development.

For elite members, the option of choosing benefits will be welcomed by some, though other programs offer top-tier elite members all benefits rather than forcing them to choose.

If you want to redeem transferable points for flights operated by Etihad, it's worth considering Air Canada Aeroplan. Aeroplan has fixed rates for partner redemptions and much more reasonable redemption cancellation fees than Etihad Guest now charges.