These loyalty programs have suspended awards due to coronavirus
The coronavirus pandemic has disrupted businesses in ways we've never seen before. Perhaps the hardest hit is the travel industry.
In addition to making significant service cuts, airlines, hotels and cruise lines around the world have suspended all or most of their operations due to the pandemic. Although technically still running, we've also seen several travel companies — such as car rental giant Hertz and Virgin Australia— file for bankruptcy.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
To protect cash flow, many travel companies have been making changes to their loyalty programs. Initially, programs began by limiting the option to use points and miles for non-travel related redemption. However, some programs have now suspended award redemptions altogether.
Related: Loyalty programs limiting non-travel redemption options
[table-of-contents /]
Hertz Rewards
Hertz filed for bankruptcy on May 23, 2020, but intends to keep the company running while it goes through the process. Per the company, any Hertz Gold Plus points you have should be safe to redeem for free rentals, though some members have reported issues doing so. It also appears that Hertz removed the ability to transfer points to airline partners, adding to several other no-notice devaluations in recent years.
Related: Hertz files for bankruptcy, intends to stay in business
Thai Airways Royal Orchid Plus
Thai Airways confirmed on May 19, 2020 that it will reorganize under a bankruptcy court. Aside from all flights being currently grounded through June 30 due to the pandemic, the airline said that it intends to continue its normal operations during the reorganization. However, as of June 2, refunds have been put on hold and most Thai Airways Royal Orchid Plus awards redemptions have been suspended, including all flight redemptions.
Per a statement on Thai's website: "From now on, redemption on all Star Alliance Air Awards, Hotel Awards, and some Lifestyle Awards is temporarily not available until further announcement. We do apologize for the inconvenience that may cause."
The program is a transfer partner of Citi ThankYou Rewards, but doesn't offer much value as it tacks on expensive fuel surcharges for its awards. There is no information available on when this restriction may be lifted.
Virgin Australia Velocity
Virgin Australia voluntarily entered into administration (similar to bankruptcy protection in the U.S.) on April 21, 2020 and suspended its Velocity program shortly after, despite it operating as a separate company that has not entered administration. Members can continue to earn points with the program's partners, but aren't able to redeem them during the pause.
Related: Virgin Australia freezes Velocity frequent flyer program as airline enters administration
The airline posted an update on its website, alerting members to the temporary suspension of redemptions. It explained:
"We've made the difficult decision to pause all redemptions for an initial period of four weeks, effective immediately. This means our members won't be able to redeem their Points for rewards during the pause.
We know how much our members love to plan their travel and use their Points to redeem flights, however the ongoing travel restrictions and reduced flights have limited the options for them to use Points for flights. We're seeing more members use Points to shop online for items such as gift cards, electronic goods, and wine. This unexpected demand has made it difficult for our suppliers to provide these offers and limits the availability for all members to redeem their Points.
What our members need to know:
- Your Points aren't going anywhere. They will remain in your account.
- Your existing Points will not expire through this period. We will be extending the expiration period for your existing Points by the timeframe of the pause.
- You can continue to earn Points with our partners, although you won't be able to redeem them during the pause.
- These changes take effect immediately. Although the initial timeframe for this restriction is four weeks, this period may be extended.
We will come back to you with an update as soon as we can."
Related: What Virgin Australia's voluntary administration means for travelers around the world
Other possibilities in the future
While it's impossible to know what the future holds for loyalty programs, there are a handful of other airlines that have filed for bankruptcy or have had loyalty-related issues over the last few months. While redemptions are still available with all of them, there's some potential risk for further changes moving forward.
Advantage Expressway
Advantage Rent A Car filed for Chapter 11 bankruptcy protection on May 27, 2020. For now, the company is continuing business as usual, including redemptions with its Expressway rewards program. This is the third time the company has filed for bankruptcy since 2008.
Avianca LifeMiles
Colombian carrier Avianca filed for Chapter 11 bankruptcy protection in New York on May 10, 2020. However, its frequent flyer program LifeMiles operates as a separate company from the main airline and is not affected by this bankruptcy filing. All LifeMiles elite members have had their status extended through January 2022, and members can continue to earn and redeem LifeMiles while Avianca restructures. That said, if Avianca does end up liquidating, LifeMiles members may lose the ability to redeem miles for Star Alliance award flights.
Related: What should you do with your miles if an airline is going bankrupt?
LATAM Pass
LATAM Airlines filed for Chapter 11 bankruptcy restructuring in New York on May 26. The filing covers its businesses in Chile, Colombia, Ecuador and Peru, but not its operations in Argentina, Brazil and Paraguay. As of now, the airline continues to fly and does not expect the LATAM Pass mileage program to be affected. Members can currently continue to earn and redeem miles as per usual.
Related: Do frequent flyer miles survive airline bankruptcies? It depends
Virgin Atlantic Flying Club
Virgin Atlantic's Flying Club website was down from May 24 until June 2. This raised some concern given the airline's very public struggling financial position — founder Sir Richard Branson said it would collapse without government support. However, the site is back up and running and there appear to be no changes to accounts. You can still use your miles for things like train tickets, wine and gift cards, as well as transfer your miles to hotel partners like Hilton and IHG. A Virgin Atlantic spokesperson has confirmed to TPG that the downtime was purely the result of technical difficulties and not reflective of any changes or devaluations coming to the program.
The program is 1:1 transfer partner of most major transferable points programs — American Express Membership Rewards, Chase Ultimate Rewards, Citi ThankYou Rewards and Diners Club.
Related: If you are worried about airline bankruptcy, here's how to burn through your miles now
Bottom line
It goes without saying that many travel companies have been in tough financial positions recently, and it's likely that this list will grow as time progresses. Hopefully these freezes won't last long and the companies will protect the value of people's points — though only time will tell if this becomes a reality.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees