Airlines, desperate for cash, are running lucrative purchased miles promotions. The opportunities seem almost too good to pass up, don’t they? But don’t buy miles unless you have a very specific trip in mind. Not in this world of uncertainty.
Several have asked me via email about the purchased miles promotions airlines like Alaska and American are currently running. These are the best deals we’ve seen in years (the AA deal reminds me of the US Airways days). Etihad is also running a great promotion which opens up interesting opportunities on airlines like Royal Air Maroc, Czech Airlines, and Air Serbia.
Is Now The Time To Stock Up On Purchased Airline Miles?
So is now the time to stock up on miles?
No. Absolutely, not.
We are in a period of such tremendous uncertainty that buying miles is a risk I am not personally willing to take at this point, with one exception.
If there is award space available now for a trip I plan to take, I might purchase the miles. For example, once all of this blows over I’d like to take my wife to Tahiti. It’s something I’ve wanted to do since we were married and Air Tahiti has released a lot of award space lately.
But even that I am leaning against. Who knows what the world will look like in six months? Who knows what my businesses will look like? If financial bleeding occurs due to a protracted shutdown and virtual end to revenue in all three of my businesses, it is not really the time to think about a vacation to Tahiti.
My in-laws may come and visit us this summer. I was going to use American Airlines miles to get them to Los Angeles, as the fuel surcharges is not as bad when originating in Europe. But that’s on hold too…who knows what travel will look like.
I’d also love to fly Qantas and Cathay Pacific before the end of the year, in case I lose my Executive Platinum status status in early 2021. That’s on hold too.
When Should You Purchase Airlines Miles?
It’s very simple: I’d purchase miles only if you see specific award space you will book immediately upon completing the transaction. With American Airlines, you can put the space on hold before buying miles. If you really want to be safe, call Alaska Airlines and have the agent set up the reservation, then purchase the miles while on the phone with the agent.
CONCLUSION
There are some great deals out there right now. Even so, I would not purchase miles unless you have a very specific redemption you will immediately use the miles for.
Are you taking advantage of any purchased mile promotion during this time?
So, essentially you are saying “don’t do most mileage credit card offers”, since any time you put spend on a miles card you’re passing up cash as an opportunity cost (either a cash offer or just on a straight 1.5-2% cashback deal).
Even AMEX is hard to get good cash value out of unless you’re using the Schwab Platinum Card… good thing your blog doesn’t depend on credit cards and getting clicks and completed applications. Like, ahem, others.
It’s refreshing that your advice can be divorced from your financial interests…
I’m still using my CSR versus a cashback card, became I get 3-5 cents in redemption value. That said, if you have a consistent 2% cashback card you can recommend I’d consider it.
USAA Preferred Cash Rewards Visa Signature. 1.5% rate plus a bonus 1% if you have a monthly direct deposit or electronic bank transfer to your paired USAA bank account.
Short answer: Helllllllllllllll no
@ Matthew — While you are at it, load up on overvalued stocks, too. 🙂
Good advice.
I think the main challenge/issue is that the offers available *right now* are not lucrative enough. They merely match the best-ever rate, not better. Given that the industry will contract further, I think it’s prudent to wait a bit more.