Airlines Modify Frequent-Flier Rules

By Staff and Wire Reports

Some carriers are stripping miles from accounts without current activity.

Travelers who infrequently use their frequent-flier accounts may have to kiss their miles goodbye.

A growing number of airlines are establishing stricter policies that eliminate miles in inactive accounts.

Many travelers who hoped to some day parlay the miles into free flights or use them for a seat upgrade are furious.

US Airways: The carrier begins a new policy Wednesday that will delete all the miles of frequent-flier club members who haven’t earned or redeemed Dividend Miles in 18 months, down from the current 36 months. It means accounts inactive since mid-2005 will be nullified.

United Airlines: Beginning next Dec. 31, United will make the same change as US Airways.

Delta Air Lines: Last month, Delta began erasing all miles in SkyMiles accounts that had been dormant for two calendar years. Its policy had been to permit 36 months of inactivity before miles would disappear.

At American Airlines, which has more than 7,000 employees in Tulsa, customers will not forfeit their frequent flyer miles if there is any qualifying activity in their account in any 36-month period, said spokesman Billy Sanez. The rule became effective as of Jan. 1, 2000, he said.

The exception to the rule, Sanez said, is for miles earned prior to July 1, 1989 in accounts established prior to Jan. 1, 1989. Those mileage credits will not expire, he said.

“Each qualifying activity on or after Jan. 1, 2000 extends the expiration date of all unexpired mileage credit in your account for 36 months from the date of the qualifying activity,” Sanez said. “Qualifying activity is defined as redeeming any AAdvantage award or accruing mileage credit on any eligible American, American Eagle, AmericanConnection or AAdvantage airline participant as well as accruing mileage credit with participating hotels, car rental companies, credit cards, telecommunications providers and other service providers offering AAdvantage mileage credit.”

Industry analysts said restrictions on the use of frequent flyer miles have evolved because of the volume of mileage accumulated by airline customers.

“Frequent-flier miles are a liability on the company books,” says Barbara Beyer, president of airline consultant Avmark. “The airlines really want to get rid of them as they clean up their balance sheets.”

But the carriers may also be alienating potential customers.

“I hate the concept of expiring miles,” says Josh Perlstein, president of a marketing and advertising company in Atlanta whose credits expired in AirTran’s frequent-flier program.

Perlstein says he still flies on AirTran, but avoids the airline when competitors offer the same price and convenience.

Of 16 U.S. airlines contacted by USA Today, only Continental and Aloha said miles do not expire in their frequent-flier members’ accounts. Continental has a written policy stating that miles can expire if none are earned in 18 months, but the airline doesn’t act on it, says spokesman David Messing.

This story was written by Gary Stroller of USA Today with additional information from the Tulsa World business staff.

(c) 2007 Tulsa World. Provided by ProQuest Information and Learning. All rights Reserved.