How Do Frequent Flyer Miles Work?

The appeal of frequent flyer miles isn’t difficult to understand. As a reward for airline travel, you accrue miles that can be used as a currency to literally take you places. But these loyalty programs, introduced in the early 1980s, are undergoing major makeovers. Last year, many airlines revamped their programs and introduced new barriers to booking trips.

While frequent flyer miles remain a great way to trim your travel costs and whisk yourself off to exotic locales, they’re no longer a simple dollar-per-mile proposition. Understanding how frequent flyer miles work – from how they accumulate to how you can redeem them – can be key to maximizing your rewards. Here’s what you need to know.

Once upon a time, one mile traveled equaled one mile gained in your frequent flyer program. Given recent changes, it can be tough for even the savviest frequent flyers to keep up.¹ It’s impossible to outline all the changes here, but you should know that miles flown are no longer a key factor in racking up frequent flyer miles – and in some cases, they’re not factored in at all. 

In one of my frequent flyer programs, for example, passengers receive between 5 and 11 miles per dollar spent for a ticket, depending on their frequent flyer program status. In addition, the less expensive the airfare, the fewer the miles you get. Premium economy, business-class, and first-class tickets push up your miles much faster. In the end, the airline combines miles, dollars spent on tickets with a co-branded credit card, and flight routes to determine what program status I achieve. My airline miles credit card expenditures allow me to push my status and benefits to a higher level than I would receive by flying alone. Check with your airline to understand how the specifics of its program work, including blackout dates and expiration dates for using rewards. 

Tip: Review how recent changes in your frequent flyer program(s) affect how you earn frequent flyer miles.

Miles still matter, just not as much as before. Since the major airlines have migrated to a model that rewards higher spending with a higher program status, the frequent flyer status you achieve may or may not be all that important, depending on your travel needs and preferences. It’s typically smart to focus on one or two frequent flyer programs with the route systems and partners you need for domestic and international travel. There are three major alliances: Star Alliance, One World, and Sky Team. Moreover, you can earn miles or points in many different ways, including through hotels, online shopping malls, and dining rewards programs. 

Tip: Understanding how you travel can help you find the right frequent flyer program – and help you maximize rewards. Elite status may not be as important.

You can reach a higher frequent flyer status by continually flying a specific airline, but the right branded airline credit card can take you places faster for three reasons. You can:

1. Get a big sign-up bonus. Some cards offer tens of thousands of bonus miles after you spend a specified amount in the first few months of opening the credit card.

2. Regularly earn miles or points. Everyday purchases at restaurants and supermarkets, for example, can add to your total miles with higher mile-earning multiples.

3. Earn status-promoting bonus points. With some credit cards, if you hit a predetermined annual spending level – say, $30,000 in purchases a year – you can get bonus points that promote you to a higher program status. These are different from the miles or points you earn toward flights. 

There are many other ways to collect miles and boost your frequent flyer status. One of my favorites is to pay IRS-approved healthcare and medical bills with my branded airline credit card and then reimburse myself from my health savings account (HSA). Not only do I receive a significant tax break, but I receive miles I wouldn’t have otherwise earned. Likewise, you can “double dip” with vacation packages sold by the airline, hotels, rental cars, and more. In other words, you get to earn miles by using the card and you receive additional miles in your frequent flyer account from the merchant selling the vacation package. 

Tip: Earn tens of thousands of bonus miles annually – and possibly boost your program status – by spending on a branded airline credit card and hitting key spending thresholds.