Airline Mergers Effect on Frequent Flyer Miles
Here’s what to expect if your frequent flyer program is eliminated…
With the recent proposed mergers of Delta and Northwest - and United and US Airways, what will happen to the thousands of frequent flyers with unused reward miles? When competing airlines join forces the merger almost always results in the elimination of one program, with just one card and one issuer remaining. Although the unused miles are normally transferred, cardholders will have to make a choice between sticking with the company or switching to a new airline credit card.
With merger talks between Delta and Northwest, its likely Northwest will loose out to its potential parent company - Delta. Since Delta’s program is associated with American Express, the Northwest Airlines WorldPerks® Visa® (provided by U.S. Bank) is sure to be eliminated and American Express will become the new card issuer for the merged entities. This means existing Northwest cardholders should expect a complete overhaul of their existing program terms. Be aware that this may or may not result in more restrictive program policies - so be sure to look into the details if you think your frequent flyer program will be eliminated.
With fewer carriers and less competition, booking a flight with your frequent flier miles may become more difficult. And since many frequent flyer programs include annual fees and higher interest rates, it may be a good time to evaluate your airline reward card and all the miles you’ve accumulated in your frequent flier account. Many reward miles expire within 18 months if there’s no new account activity. Take the time to compare your airline card with other offers and make sure you’re getting the best possible deal.
Some airline cards like the Chase Flexible Rewards Visa® or the Citi® PremierPass® Card are not tied to a specific airline, so you can use your miles on most major carriers. Not only can you choose your airline, but many of these cards allow you to use your miles for cash rebates and other rewards. But the flexibility comes at a price. Without special incentives and bonuses for your loyalty, it will take longer to accumulate points and earn free travel.
Choosing the right offer depends on you. Consider how you’ll use your card and the types of rewards you can earn. For more information about how to choose the best airline credit card, see our article on “Choosing the Best Airline Mile Credit Card.”
* Or, see our complete list of airline mile credit cards >
