Fly The Unfriendly Skies of United: Massive Devaluation of Award Chart

Another Friday, another devaluation at United Airlines. United posted an updated award chart today and it is not pretty. Targeting primarily premium cabins on partner airlines, mileage required will rise by as much as 87% over current levels! The new chart takes effect on February 14, 2014 and transforms the MileagePlus program from the most lucrative airline loyalty program in the world to one that now will require careful evaluation before future crediting. This is truly bad news–there are no bright spots.

I will provide much more detailed analysis later today, but for now keep this in mind–

1. Partner Awards will now be separated from United Awards. United is part of the Star Alliance, with 28 member airlines from around the world. Currently you can redeem your miles on any Star Alliance flight (subject to availability of course) for the same number of miles as on a United flight. That will change in many instances under the new chart. United has to pay out an undisclosed amount for partner award flights and this move to disincentivize travel on partner carriers is draconian…consider that to fly Lufthansa to the Middle East in First Class it currently costs 150K miles r/t. On 01 Feb 2014, the same trip will cost 280K miles. Fly on United, though, and you’ll “only” pay an extra 20K each way or 190K r/t. Say goodbye to Lufthansa First Class…

2. Still no fuel surcharges. Though we were spared fuel surcharges, in a way I would have preferred them to increasing the rates as dramatically as United has done. United accomplishes the same purpose by simply charging (a lot) more miles.

3. United Awards will not be unreasonable. If you are able to keep your award on United Airlines flights, there will still be good values to be found. The question is will United release more seats on their own metal going forward? I suspect not.

4. If you have United miles built up, it is time to start booking, but do not panic! While I look forward to the upsurge in business in helping all of you burn your United points, you do not have to panic and book today. Award space is dynamic and more flights will be added in the upcoming months before the devaluation. Better to properly plan and get the best use of your miles then to burn the miles in haste and end up with a less-desirable trip.

5. Chase United MileagePlus-branded credit cards becomes less valuable. With United miles about to be worth much less if you are seeking international premium cabins, I would re-evaluate the use of any MileagePlus branded cards. Far better to use a Chase Sapphire or INK card, which gives you more flexibility in transferring points.

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The new North American chart is summarized below but also can be found here (compare to the old chart).

United claims the move was necessary. Spokesman Rahsaan Johnson stated, “We’re increasing miles required in these markets for the first time in several years to account for the increased cost of providing transportation, particularly in the premium cabin and particularly on the Mileage Plus partner carriers…We faced a decision other airlines have faced — to either increase the number of miles required for partner awards or to eliminate them altogether.”

The latter statement present a false dichotomy, but the spin is no surprise. 

Stay tuned for more as this story develops.

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