Victoria M. "Vikkie" Walker is a former TPG senior travel reporter, where she covered deep-dives and features with an emphasis on coronavirus and travel. Vikkie is a former college journalism professor who now lives in New York City with her pug, Migo.
June 26, 2020 • 7 min read
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Quick summary
Airlines are offering promotions on buying miles to boost revenue during the pandemic, but the value depends on your immediate travel plans and the airline's financial stability.
Purchasing miles is generally not recommended unless you have a near-term redemption in mind, due to ongoing travel restrictions and uncertainty.
If an airline files for bankruptcy, your miles may be at risk, and program devaluations or new fees can further reduce their value.
Buying miles may not qualify for travel-related bonus rewards, as most purchases are processed through third-party platforms.
What to consider
Miles purchases are often nonrefundable, so you could be left with unusable miles if plans change or programs devalue.
Some loyalty programs impose higher taxes and fees on award tickets, which can impact the overall value of your redemption.
Not all mileage purchases earn bonus rewards, as many are coded as general purchases rather than travel.
What you'll miss from the article
A detailed analysis of how airline bankruptcies, program devaluations and award ticket policies can affect the value and security of purchased miles.
Generated by AI with support from our editorial team.
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It's no secret that thecoronavirus pandemic has left the travel industry reeling. Amid bankruptcies, furloughs and layoffs, many travel companies are trying to weather the storm — and find better streams of revenue.
Airlines selling miles directly to members is a common occurrence in the world of points and miles. But in recent months, several airlines are running promotions on these purchases to entice travelers considering taking a trip in the coming months. Though some offers are better than others, there's one over-arching question to answer: Does it make sense tobuy airline miles?
Whether you should purchase airlines miles or not depends on whether you plan to use them soon, your confidence in the airline's solvency amid a global pandemic and whether you earn points from the purchase.
Generally, we don’t recommend buying miles without an immediate plan to use them. We’re still in a global pandemic — with many parts of the world still closed to international travelers. While some states and countries have begun to reopen as coronavirus cases tick down, there’s no telling when (or if) they’ll have to shutter again. Make sure to keep your respective airlines’ change and cancellation policies in mind before you book your ticket — otherwise, you could be met with surprise fees if you have to cancel.
If you don’t plan to travel immediately — but you still want to earn miles — you’re better off earning points and miles through credit card welcome bonuses and everyday spending.
Should you buy miles in a pandemic?
Like I indicated above, there are inherent risks when buying miles right now, given the pandemic. Several airlines, including South America's Avianca, have filed for Chapter 11 bankruptcy. While Avianca LifeMiles operates as a separate company from the airline and wasn’t included in the bankruptcy filing, that isn't the case with other airlines on shaky financial ground — like Virgin Atlantic.
Chapter 11 means that the company can continue to operate as it goes through the bankruptcy process. Avianca has specifically stated that it plans to “right-size” and resume flights, so we’re confident that the airline will make it through bankruptcy without going belly-up.
If the airline does go under, LifeMiles members could lose the ability to redeem miles on Star Alliance flights — even if it’s a separate entity. You probably won’t lose your miles, but LifeMiles are one of the best ways to book Star Alliance awards given the low taxes and fees tacked on. For instance, for just 87,000 miles and $5.60 in taxes you can fly Lufthansa first class from the U.S. (like New York) to Frankfurt. Aeroplan — the loyalty program of Air Canada (another Star Alliance carrier) — tacks on $800 or more in fuel surcharges for the exact same flights.
What if your flight is canceled?
Let’s say even if you do have an immediate flight and your airline survives the pandemic — your flight could still be canceled. It’s a serious possibility to consider, as many airlines remain grounded or continue to adjust their flight schedules. And with ongoing uncertainty surrounding the coronavirus, frequent cancellations may continue for months.
While some programs have been pretty customer-friendly, others have used the pandemic to implement stealth devaluations by removing award charts or adding new fees for booking awardtravel. You are entitled to a mileage refund on your award ticket if the airline cancels your flight, but you can't then return the miles and get your money back for the initial purchase. That means you could be potentially stuck with miles in a program that could devalue at any point.
Will you earn points?
Many buy miles promos are processed throughPoints.com and not the airline directly. If you're just looking to top up an account, that isn't the end of the world, but it does mean that you probably won't earn points with a card that has a travel category bonus.
That said, you can still earn some solid rewards on certain cards, and some of the best options that fit this bill includeThe Blue Business®️ Plus Credit Card from American Express (2X Membership Rewards points on the first $50,000 in purchases per calendar year; then 1X, giving you a4% return based on TPG valuation) or Chase Freedom Unlimited (1.5% cash back or 1.5x Ultimate Rewards points if you have a premium Chase card for a 3% return based on TPG valuation).
The major exception to this rule is American miles — the airline reportedly codes mileage purchases as airfare, so you’ll want to use a credit card that earns bonus miles on travel, such as The Platinum Card® from American Express or Chase Sapphire Reserve, for the highest returns on your mileage purchases.
Bottom line
With the current state of the travel industry, it’s a pretty uncertain time to buy miles. Airlines worldwide have been hit hard by the coronavirus-fueled travel downturn. There’s also no indication that the virus will be contained by the end of the year -- or even slowed down by the end of the summer. So unless you have immediate plans to use them in the next few weeks, you may want to hold off on buying miles for now.
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
