devaluation

Tag Archives for devaluation.

Cathay Pacific Announces They’re Devaluing The Asia Miles Program

first class
Jul 06 2023

Cathay Pacific has announced a devaluation which goes into effect October 1. Unlike U.S. carriers they still have a true award chart, which means that when raising award prices they have to tell you. And they’re giving three months’ advance notice.

Make no mistake, though: Asia Miles will be worth less. The FAQ for the changes even has a question “Are you devaluing Asia Miles?” And even they do not say no.

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FAA Reauthorization Language Would Ban Frequent Flyer Devaluations Without Notice

Jun 15 2023

There’s a tremendous amount of wrangling over what will be in the FAA’s 5-year reauthorization currently being developed in Congress.

One lesser-noticed item that’s been posted by the Senate Commerce Committee includes protections for members of frequent flyer programs stating that frequent flyer programs wouldn’t be able to devalue their miles without first giving members 90 days’ advance notice

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Devaluation Without Notice: Alaska Airlines Hikes Japan Airlines Award Pricing Up To 100%

Mar 14 2023

After a debacle years ago increasing award pricing without notice for travel on Emirates, Alaska Airlines made an express commitment to notify members in advance when making changes to the program.

Sadly they did not do that this week, as Monday they increased the price of award travel on their oneworld partner Japan Airlines, and they did this without any advance notice. So members who were saving their miles for a specific trip had the rug pulled out from under them.

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Alaska Airlines Devalues British Airways Awards, Adds Connecting Flight Surcharge

Jan 27 2023

When Alaska Airlines introduced its new, unified award chart that replaced the separate charts for each airline partner on its website a month ago, it was a loss for transparency.

By sharing less information about award prices, they can increase those prices without telling consumers. They had previously committed to share changes with members in advance. But as long as the ‘starting from’ price doesn’t change, they can increase most award rates at will.

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Warning For American Airlines Debtholders And Credit Card Partners

Jan 03 2023

While there was much talk in 2021 about AAdvantage devaluations, they committed not to change their award chart as they rolled out Loyalty Points as a new way to earn elite status. Now the deferred chickens may come home to roost – risking the value of the AAdvantage program, the revenue streams for co-brand partners, and the quality of AAdvantage-backed debt.

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Emirates: We’re Going To Keep Devaluing Over The Next Month

private airplane bar
Dec 24 2022

Emirates has instituted a ~ 20% increase in miles required for premium cabin awards on many non-stop itineraries to and from Dubai, while so far leaving connecting itineraries and fifth freedom routes unchanged, though that could change. This was done with no notice, and after already raising business class award pricing earlier this year. But they aren’t done, according to the airline.

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Air Canada Making Changes To Award Chart September 1, 2022

Jul 28 2022

Air Canada’s new Aeroplan program eliminated fuel surcharges on award travel and introduced a region and distanced-based award chart.

Two years after the new program’s award pricing was announced they’re making several changes, in general reducing the price of partner short-distance awards between different regions of the world while increasing the price of the longest trips in premium cabins. These go into effect September 1.

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Why Every Rewards Program Has The Same Two Components

Jul 11 2022

American Airlines’ own data shows that following devaluations of the AAdvantage program elite members moved flying away from the program. AAdvantage itself generated more revenue, because its credit card deals became more lucrative. That earn-burn program grew, while the most engaged members stepped back.

That may even be the right business decision! Flying has frequently been unprofitable for American while net revenue has been driven by selling miles to banks. Maybe they should reward flying less if they’re not making money on it.

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