A few weeks ago, we discussed the impact of inflation on air fares and the potential risk of airline miles devaluation.
We highlighted the importance of acting proactively to secure the highest value for your miles before it's too late.
The recent devaluation of United Airlines' MileagePlus awards worldwide is a prime example of the concerns we raised. As we had feared, the devaluation has now extended globally, with award rates increasing anywhere from 21% to 122%. This is a clear indication that airline miles are indeed at risk, and the value of these miles is decreasing faster than the rate of inflation.
United Airlines' recent devaluation of its MileagePlus awards program has sent shockwaves through the frequent flyer community. The changes have been described as the worst devaluation in the program's history. Let's delve deeper into the specifics of this devaluation.
Devaluation in Flights to Japan
One of the most severe devaluations has been observed in flights between the U.S. and Japan. For instance, a business-class flight from Honolulu's Daniel K. Inouye International Airport (HNL) to Nagoya's Chubu Centrair International Airport (NGO) via Guam's Antonio B. Won Pat International Airport (GUM) that was previously booked for 45,000 miles in the IN fare class is now selling for 100,000 miles. This represents a staggering 122% increase.
Economy class flights, which used to be 35,000 miles, are now pricing at 55,000 miles, marking a 57% increase. This sharp rise in award rates has made travel to Japan significantly more expensive for MileagePlus members.
Devaluation in Flights to Australia
Flights between the U.S. and Australia have also seen a significant devaluation. Previously, these flights often started at 40,000 miles in economy and 80,000 miles in business class. Now, they'll cost 55,000 miles in economy (a 37% increase) and 100,000 miles in business class (a 25% increase).
Devaluation in Flights to South America
The devaluation has also affected MileagePlus awards between the U.S. and South America. Previously, one-way Avianca flights from the continental U.S. to airports like Buenos Aires' Ezeiza International Airport (EZE), Rio de Janeiro/Galeao International Airport (GIG), and Santiago's Arturo Merino Benítez International Airport (SCL) required 33,000 miles in economy or 66,000 miles in business class. Now, these awards will require 49,500 miles (a 50% increase) in economy and 87,800 miles (a 33% increase) in business class.
What's Next?
While the devaluation has been significant, it's important to note that U.S. domestic awards and awards to the Middle East remain largely unchanged for now. However, given the global trend, it's possible that these regions could also see devaluations in the future.
This devaluation serves as a stark reminder of the volatility of airline miles and the importance of using or selling them before they lose value due to such changes. As we've seen with United Airlines, these devaluations can happen without notice and can significantly impact the value of your hard-earned miles.
Don't let your hard-earned United miles lose their value due to devaluation. Act now and secure their worth by selling them with The Miles Market. Our process is simple, secure, and guarantees you the best value for your miles. Don't wait for another devaluation to hit – secure the value of your miles today with The Miles Market. Sell your United miles now.
