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AAdvantage Members Redeemed $886 Million in Free Flights This 12 months. How Much Did You Get?

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AAdvantage Members Redeemed $886 Million in Free Flights This 12 months. How Much Did You Get? 1

On Friday morning, American Airways introduced its monetary outcomes for the primary quarter of 2019. It wasn’t an excellent quarter, and it’s not getting higher anytime quickly. Airline administration warned of potential $1 billion discount in earnings because of the 737 MAX grounding and rising gasoline costs.

One of many vibrant spots identified by airline administration was “higher loyalty revenue.” However that’s not (simply) from promoting extra miles to airline members and credit card issuers. On account of a income recognition change efficient January 1, 2018, airways now truly need you to make use of your miles. That’s as a result of airways need to defer income when miles are earned, whether or not via flying or earned via credit cards. This income can’t be acknowledged by the airline till “mileage credits are redeemed and transportation is provided.”

That’s why airways are working to fill airplane seats with passengers paying with miles, if they will’t fill them with cash-paying passengers. We’ve seen new mileage initiatives from most home airways:

  • Delta’s fixed flash gross sales

And these efforts are displaying. Within the third quarter (July-September) and fourth quarter (October-December) of 2018, AA noticed double-digit proportion progress in loyalty income journey. Within the first quarter of 2019, American Airways acknowledged $886 million in income from award redemptions. That’s a file because the airline has began utilizing this new revenue-recognition process.

However it’s not simply the income quantity that’s rising. The share of complete passenger income that’s from award journey has steadily ticked upward. In 2017, award journey made up 7.6% of complete passenger income. In 2018, that quantity was as much as 7.9%. For the primary three months of 2019, as a lot as 9.2% of complete passengers income is from award journey — however that features the seasonal bump often seen in Q1.

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Quarter Loyalty income
journey (tens of millions
of {dollars})
12 months-over-year
enhance
% of complete
passenger
income
(rolling
12 months)
This fall 2017 728 7.6%
Q1 2018 850 6.0% 7.6%
Q2 2018 797 5.8% 7.7%
Q3 2018 771 10.8% 7.8%
This fall 2018 801 10.0% 7.9%
Q1 2019 886 4.2% 8.0%

Hopefully you have been a part of that record-setting $886 million in free flights flown in the primary three months of 2019. Even when not, it’s not too late to get into the sport that airways now need you to play greater than ever. In case you’re in search of some inspiration on tips on how to use your AA miles, listed below are a few of my favourite methods to redeem AAdvantage miles:

Diminished Mileage Awards: sure AA co-branded credit score cardholders can apply a reduction code to redeem award flights to/from sure airports for as little as 6,500 miles every means. On the most recent model of the promotion that runs from April to July, there are 139 airports listed for at the least one month and 43 airports listed for all 4 months.

: American Airways’ latest mileage low cost program appears to be a step towards dynamic mileage redemptions, nevertheless it’s additionally a technique to get home award flights from 5,000 miles every means, Caribbean award flights from 5,000 miles every means and discounted awards to Hawaii, Europe and South America.

: One other candy spot in AA’s award chart is enterprise class from the US to Japan for simply 60,000 miles every means in enterprise class. American Airways has a strong enterprise class product on routes to Japan, however you may additionally redeem AAdvantage miles for Japan Airways enterprise class as a substitute.

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Enterprise class awards on the : For the TPG Awards, we put the world’s greatest airways to the take a look at to determine which was the highest. The winner: American Airways associate Qatar with its Qsuite product. Right here’s the place Qsuite is flying in the US in 2019 — together with tips on how to search award availability. It’ll price 70,000 miles one-way from the US and the Center East (e.g. Qatar, Egypt, Saudi Arabia, UAE) or Indian Subcontinent (e.g. India, Sri Lanka, Maldives) — or 75,000 miles every means between the US and anyplace in Africa (e.g. Seychelles, Mauritius, South Africa).

: If solely top notch will do — and yow will discover award availability — you’ll be able to redeem AAdvantage miles for among the finest top notch merchandise in the sky: Etihad Residences. In testing for the inaugural TPG Awards, Etihad Residences ranked #2 in the world — falling simply wanting Emirates top notch. The world’s second-best top notch product doesn’t come low-cost at 115,000 miles every means, however that’s affordable in comparison with some award charges on AA flights.

In case you want extra miles to make your redemption targets a actuality, there’s quite a lot of credit cards with elevated sign-up bonuses:

Featured picture by JT Genter / TPG

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