What to know about rising fuel prices and airline rewards
AP News • • business
Key Points:
- Airline miles and travel rewards points are less valuable this summer due to a 21% increase in airfares driven by rising jet fuel prices amid the Iran war and higher demand during the summer travel season.
- Airlines now use dynamic pricing for award flights, meaning more miles or points are needed to redeem tickets as prices rise, making it harder to find exceptional deals compared to a decade ago.
- Travelers can still earn miles through frequent flyer programs and co-branded credit cards, with some cards offering perks like free checked bags for loyalty members despite increased baggage fees.
- Flexible points credit cards are recommended for beginners as they offer transferability across airlines and broader redemption options, with many banks promoting substantial sign-up bonuses this summer.
- Experts caution that carrying credit card balances with high interest rates can negate travel rewards benefits, and hotel loyalty points may also be less valuable following recent program changes, such as Hyatt’s increase in points required for elite properties.