Airline Frequent-Flier Programs - Major US Carriers

Overview – Airline Frequent-Flier Programs

If you’re traveling on a US carrier, chances are good that you are flying on one of four airlines. American, Delta, Southwest and United control over 80% of the total capacity across the country, which is down from seven majors in 2000. Thus, it’s more important than ever to know the basics of your preferred airline, since your choices are more limited.

In future articles, we will go into each of the major programs in depth, but for now, here is a brief overview of each.

Frequent-Flier Programs – Major US Carriers

American Airlines (AA) – Frequent-Flier Program

In terms of total domestic seats flown, American is the largest carrier in the country,¹slightly ahead of both Delta and Southwest. It has hubs in Dallas, Chicago, Miami, Charlotte, Philadelphia and Phoenix, and it is a member of the oneworld alliance. American and its partners fly to over 1,000 destination around the world.

American’s frequent flyer program is known as American AAdvantage and, like the airline itself, is one of the largest in the country. Given the breadth of its network, American is an excellent choice for international flights, with particular strength in partnerships to Europe, South America and Asia.

Mileage earning is based on dollars spent, with customers earning five base miles per dollar spent. Members with elite status earn a bonus, with its top-tier Executive Platinum flyers earning a total 11 miles per dollar spent.

Currently, redemptions are based on a fixed award chart, with four different levels of rewards based on when you are traveling. Longer trips and premium classes of service also cost more. I would expect, however, American to change its structure to match its competitors, who have variable pricing based on the cash price of the ticket.

Delta Airlines (DL) – Frequent-Flier Program

Delta Airlines is the second largest US carrier, only a few tenths of a percent behind American. It has hubs in Minneapolis, Detroit, Salt Lake City and America’s largest airport, Atlanta.Delta is member of the SkyTeam alliance and has particular strength to Europe.

It doesn’t matter whether you are going to Heaven or Hell, you’ll still need to change planes in Atlanta.
Airline geeks (#AvGeeks) have an unusual sense of humor.

Delta’s frequent flyer program is called SkyMiles, although frequent adjustments and mileage devaluations have led some frequent flyer miles to nickname the program “SkyPesos.”² Sadly, the other airlines seem to be chasing Delta in a race to the bottom.

Similar to American, mileage earning is based on dollars spent, with customers earning five base miles per dollar spent. Members with elite status earn a bonus, with its top-tier Diamond elites earning 11 miles per dollar spent.

A few years ago, Delta eliminated its fixed award chart moved to a variable price model. Now, the price of a ticket in miles can vary, just as one in cash does. Over time, it has allowed Delta to increase the number of miles that it charges per flight subtly, rather than with a public change to a fixed chart.

United Airlines (UA) – Frequent-Flier Program

United is the third of the “big three airlines” after American and Delta. It has hubs in Newark, Chicago, Denver, Houston and San Francisco. United is a member of Star Alliance and has particular strength in Europe and Asia.

United’s mileage program is known as Mileage Plus and is similar to Delta and American. You’ll earn points based on how many dollars that you spend, with a base of five miles per dollar. Not surprisingly, members with elite status can earn up to 11 miles per dollar spent.

United recently announced that it would be converting from a fixed award chart to a variable one. And while it does allow them to match Delta in offering any ticket for cash or miles, the price in miles could be exorbitant.

Southwest Airlines (WN) – Frequent-Flier Program

Southwest Airlines differs from the big three in almost every way possible. It’s a low-cost carrier that operates without major hubs and flies almost entirely domestically. It is not a member of a traditional alliance, does not charge nuisance fees and attempts to operate as cleanly and efficiently as possible.

Southwest’s program is known as Rapid Rewards and passengers earn six, ten or twelve points per dollar spent, depending on the type of ticket that they purchase.

Any ticket can be bought with either cash or miles, and the cost in miles does vary based on the cash cost. Unlike SkyMiles and Mileage Plus, however, the cost of a ticket in points is predictable. Every point that you earn is worth 1.6-1.7 cents each, so we can estimate that a ticket that costs $165 in cash will cost about 10,000 points.

Most Consumer Friendly Rules

Southwest’s program is not only the easiest to use but has the most consumer-friendly rules, such as the ability to get a full refund if you decide not to use your ticket. Now, if they only offered international, business class tickets…