United is nerfing its business class product this month, by charging customers who opt for the lowest fare for seat assignments, eliminating changes, and banning them from its Polaris lounges (relegating them to standard United Clubs).
But they’re actually doing even more than this.
- They’re restricting mileage-earning, too. So-called Basic Business tickets (and Basic premium economy) will be just like Basic Economy. They will not earn any miles if you do not have MileagePlus status or their credit card.
- And these business class (or premium economy) flights will not count towards MileagePlus status, either. They will earn Premier Qualifying Points (they add to your dollars spent for status) but will not earn Premier Qualifying Flights.
Prince of Travel was first to flag the restriction on elite status-earning for basic business fares, while Executive Traveller was first to confirm that United would treat basic business and premium plus tickets the same as basic economy for redeeming mileage-earning.
Low/No Mileage-Earning For Basic Business
United eliminated mileage-earning on basic fares for general members without the credit card, effective April 2 – and deducted those 3 miles per dollar previously earned on basic (economy) fares from everyone else’s earning as well.
As a result, general members with a credit card will earn 3 miles per dollar on basic fares. And those with status earn:
- Silver: 2 miles per dollar, but 5 if they have the credit card
- Gold: 3 miles per dollar, but 6 if they have the credit card
- Platinum: 4 miles per dollar, but 7 if they have the credit card
- 1K: 6 miles per dollar, but 9 if they have the credit card
This turns out not to apply just to basic economy – as United first announced – but to all ‘basic’ fares regardless of cabin.
Miles Earned On Non-Basic Business Tickets
This shift follows United reducing mileage-earning for customers without a credit card by 2 miles per dollar, and increasing earning for those who have one by 1 mile per dollar. (MileagePlus isn’t of competitive value in markets outside the United States where United doesn’t offer a card, and odd positioning for the U.S. airline flying to the most foreign destinations.)
That means standard (non-basic) business class tickets earn as follows:
| Status | Pre-April 2 Earning | New Base Earning | New Cardmember Earning | ||
| General member | 5 miles/$ | 3 miles/$ | 6 miles/$ | ||
| Premier Silver | 7 miles/$ | 5 miles/$ | 8 miles/$ | ||
| Premier Gold | 8 miles/$ | 6 miles/$ | 9 miles/$ | ||
| Premier Platinum | 9 miles/$ | 7 miles/$ | 10 miles/$ | ||
| Premier 1K | 11 miles/$ | 9 miles/$ | 12 miles/$ |
They took away as much as 40% of mileage-earning (from base members) while giving as little as 9% more (to 1Ks with a credit card). But this allowed United to say that ‘cardmembers can earn twice as much as non-cardmembers’ (general member).
Changes To Status-Earning
United has two paths to MileagePlus status: spend-only (‘premier qualifying dollars or PQDs’) and a lower spend requirement with a minimum number of flights (‘PQDs + PQFs’). Here’s the current requirement for status. “Basic” fares will count towards the total spent with the airline for the year, but will not count as a flight taken.
| Status | Spend-Only | Spend + Flights | ||
| Silver | $6,000 | $5,000 + 15 Flights | ||
| Gold | $12,000 | $10,000 + 30 Flights | ||
| Platinum | $18,000 | $15,000 + 45 Flights | ||
| 1K | $28,000 | $22,000 + 60 Flights |
What Will Delta Do?
At the same price, American Airlines and Delta (and JetBlue, Alaska, etc.) represent a better value than United when buying these least expensive premium tickets. Their fares do not currently come with the same restrictions.
Delta has said they’re going to introduce basic fares to business and premium economy, but they haven’t said what restrictions will come with their basic fares. However, if they see share shift away from United in markets where they compete such as New York and Los Angeles, Delta could reconsider. If they’re winning business because customers prefer the better value of Delta’s business class, they’d be foolish to change.
More likely than not, though, Delta goes through with its planned changes. They, too, want to fill empty business class seats without cannibalizing the higher fares customers pay. And customers may not even realize that airlines which aren’t imposing these restrictions represent the better value – if they’re shown schedule and price when comparing, and largely assuming that ‘all airlines are the same’ (or just not realizing that United has imposed these new restrictions).
British Airways started charging most customers extra for business class seat selection in 2009, and passengers are still surprised by the fee after they’ve purchased their tickets!
However smart consumers should make sure they understand the difference in fare rules – and when prices are the same consider booking away from United Airlines basic business, at least as long as other airlines aren’t imposing the same restrictions.
After all, United’s business class seat isn’t better than Delta’s except on Delta 767s. And it isn’t better than American’s on any widebody aircraft. American’s food is even better! Delta’s business class lounges are better than United’s! United does serve better wine, though.
Hard pass. This is why I always book the non-US partner for international long haul.
“What Will Delta Do?” Mhm, because where there’s one roach, there’s usually others… You’d better believe all US legacy carriers are gonna follow (just like with the recent checked bag increases). This is a major blow for all of us (unless you only fly J full-fare on OPM).
@lavanderialarry — 100%. This is the way. For me: Europe? European airlines. S. America? LATAM. Africa or S. Asia? Qatar. (Well, not anytime soon.) E. Asia? JL, NH, SQ, BR, etc. Oceania? QF. Better service, usually, too. Credit all of these back to your US carriers, if you must.
I find it hard to believe that more than a tiny percentage of travelers would understand or be interested in the complexities of earning frequent flyer miles for their flights. Frankly, other than credit card sign up bonuses, trying to earn miles seems like a waste of time. I wonder if the airlines are killing the golden goose.
@Chopsticks — Maybe. But, tell them they won’t get access to the ‘nice’ lounge, all because of a new ‘gotcha’ on the ticket type. Then, they’ll revolt. “But, I’m in Business Class, why can’t I go to the Business lounge?” (Oof, those lounge check-in agents are gonna get an earful from some upset Boomers. Have your cell phone cameras ready to catch the burnouts! Post ’em so Gary can comment. We await your outrage, sirs and madams and others.)
Retirement: the gift that keeps on giving. First hotels decimate their programs. Airlines follow. Now they are a waste of effort.