Flying high on points or just paying more for less? Here’s how you can maximize value in the new era of airline loyalty!

Imagine you’re standing on the tarmac at dawn…

A gentle breeze stirs around you. There’s no roar of engines yet—just the promise of somewhere new, somewhere exciting.

A small thrill runs up your spine: The anticipation of movement, discovery, and what lies beyond the horizon.

Now, hold that feeling… because loyalty to airlines used to feel just like that—pure, thrilling, and simple.

Today?

That feeling has shifted, and beneath the surface hums a quiet, complicated game.

So, in this article, allow us to guide you through both the evolution of airline loyalty and how you—not the airlines—can come out ahead.

Photo from PassKit

From Frequent Flyers to BIG Spenders

Gone are the days when miles were earned for the joy of flight. Now, elite status and miles—more than ever—are rewards for spending, not simply flying.

In fact, the major U.S. carriers (American, Delta, United, and Southwest) have pivoted to a revenue-based structure. In the words of legal scholar Ganesh Sitaraman, “they’re big spender programs” more than frequent flyer ones now.

Why does this matter?

• Loyalty programs are major profit centers. In 2023, the top 10 airline loyalty programs brought in about USD 32 billion (a nearly 19% increase from the previous year).
• Over half of miles are earned via credit card spending. A full 57% of points now come from card use, not flights.
• Miles can vanish or lose value in a blink. Airlines reserve the right to quietly increase redemption costs and reduce value.

Basically, airlines literally print their own currency—miles and points—with no published exchange rate to guide you. They can determine their worth and use with total discretion.

So, how can you stay savvy as a traveler?

• Track cent-per-point value. NerdWallet analyzes actual redemption examples to estimate value—don’t guess if a flight worth USD 400 costing 20,000 miles nets you 2 cents/mile, while a USD 100 flight costing 10,000 miles is just 1 cent/mile.
• Redeem sooner, not later. Points often devalue over time, and some programs impose expiration for inactivity.

What’s more?

If you’re not using a card designed for travel rewards—and paying it off in full monthly—you’re leaving value on the table.

Here's a couple of strategies when using your card:

• Choose your card wisely.

  Co-branded airline cards offer perks like free bags or priority boarding—but you’re locked into one airline.

  Transferable-point cards (e.g., Chase, AmEx, and Capital One) grant flexibility such as transferring points to many airlines or hotels, and pivoting if one program devalues.

• Just pay the bill.

  If you carry a balance, the interest can eclipse any rewards you’d earn. If needed, aim for a 0% APR or low-interest card while paying down debt instead of chasing rewards.

Take note, though: These shifts aren’t only happening in the U.S. In fact…

• British Airways scrapped its Executive Club in favor of “British Airways Club”—spending now dictates status, and elite thresholds soared (e.g., from 600 to 7,500 points).
• Virgin Australia switched to dollar-based status credits, nearly quadrupling the spend to maintain elite status. Many found the benefits no longer justified the effort.

In contrast, Alaska Airlines is pushing the boundaries of customer choice with Atmos Rewards—the only U.S. program letting members choose their earning method: By distance, dollars spent, or segments flown!

That’s not all!

Alaska Airlines is also rolling out free Starlink Wi-Fi for members beginning in 2026 (fleetwide by 2027), and launched the Rewards Summit Visa Infinite card with benefits like companion awards, lounge access, and points pooling.

Allow us to share a few more insider tips and tricks to help you maximize value whenever you’re traveling:

• Understand your goals. Are you chasing luxe first-class getaways, reunions, or free nights? Align your strategy to your intent.
• Know what type of miles you hold. Airline-specific miles = narrow but direct value; transferable points = maximum flexibility and often higher value.
• Use award charts strategically. Some airlines use dynamic pricing tied to cash fares (like Delta, United, and Southwest), while others use fixed charts allowing “sweet-spot” redemption deals (like Alaska and ANA).
• Track your rewards smartly. Tools like AwardWallet can monitor balances, send alerts for expirations, and optimize usage across programs.
• Shop via portals. Earn extra points when you shop via airline or credit card portals (e.g. Avios, United, and Chase Ultimate Rewards) on retail purchases.
• Dine out smart. Register your card with airline dining programs to earn bonus miles every time you eat at participating restaurants (in the U.S. only).
• Redeem like a pro. Use miles on premium cabins whenever possible for outsized value. Always compare cash versus point redemption value (cents-per-point) before pulling the trigger.

Fly SMARTER, Not Just More

Keep all these tips and tricks in mind! They will all come handy when traveling to different places around the world.

Besides, the loyalty programs of old—built on simple frequency—are giving way to sophisticated marketing schemes designed to monetize every mile.

However, you can still come out ahead by being informed, strategic, and flexible.

… and we’re here to help you chart the smartest path forward.