For years, American AAdvantage miles have been the gold standard among mileage currencies at the big three US carriers.
AA isn’t alone. Name one miles program that hasn’t been devalued over the past few years.
I am UK based, so it's probably unsurprising that I have a decent stash of Avios. Some of these have come through BA's "Avios Boost", which is effectively buying them at 0.92p each (about 1.25 cents).
I've often looked at AA's redemption costs (both points and fees) and thought they were worth a lot more than Avios, although this is, of course, very route-dependent and carrier-dependent. I even gave brief consideration to buying 500k at 1.88 cents each a couple of years back.
In short, I would suggest that your valuation of 1.5 cents used to be overly conservative; given the changes you describe, perhaps 1.5 cents is now a fair valuation?
I still find plenty of value in AA miles. AA does release some premium cabin awards on its own metal. I grabbed 4 TPAC awards tickets (on the same flight) fairly recently. Unfortunately, with proliferation of award search tools, these opportunities disappear very quickly. Partner awards in premium cabins are certainly far fewer than they used to be, not surprisingly. However, JL still seems to favor its AA partnership over its other partner airlines, so JL awards are still available from time to time, albeit often at somewhat elevated prices recently.
I don't know why everyone keeps saying that JAL doesn't open first and business awards to partners anymore. They don't appear on Alaska and American because their award window is 330 days. However, for Qantas, Cathay and the Avios programs, you can usually find tons of availability a 330-360 days out.
Can’t argue with anything said here.
I do enjoy that I can consistently get more value out of AAdvantage for than the other big guys when it comes for redemptions to fly coach on their own metal. Keeps me around.
I'm still finding usefulness w/ AA miles, but mostly on domestic flights and the occasional long-haul J flights on AA metal. I'm not necessarily getting them at saver level, but it's still a relatively reasonable price, so I'm happy enough with it.
With regard to close-in saver fares not being available on partners, that's only for domestic itineraries? Because last week I was able to book a long-haul J fare on AA for my brother and sister-in-law using Atmos points.
For domestic AA flights dynamic pricing has been a godsend. Remember when 25k was the *saver* (well SAAver. RIP) option for first?? On the routes I frequent, I can easily get first for <15k miles one way. Same with economy. Saver used to be 7.5k for flights less than 500 miles. And 12.5k for 500+. You can get nonstop flights for 7k miles very frequently when booked in advance (including longer routes). And the cherry on top is it’s booked into Main and is completely flexible. Sadly the 6k one way economy flights are much less common now… but still!!
I had DL recently adjust the schedule of both flights of my F one-way award through ATL, making it a legal-to-them, but too-tight-for-me connection time. All replacements with more connection time were higher than the 29,600 miles of the original. Canceled it and got an AA flight with a decent connection time (in CLT, though) for 19,000.
I was able to get one way for four of us in November from PUJ to OKC for 8K miles plus around $50 in fees for each of us. Plently of times I can get one way from OKC to LAX and back. That's a great redemption for an almost 3 hour flight
AA DFW-LHR today for 55k AS miles. BCN is 70k. Not sure that six day cutoff is still real.
It works in the opposite direction. Can’t get AA flights with BA or AS miles less than six days out.
From my perspective, AA has been relatively consistent (and a boost in supply has mostly come from the exclusivity of Citi transfers); unlike Delta which has devalued comedically (if searching for J long-haul; 500K? Psh.), and United which, seemingly, has improved, recently. Where things get interesting is using Alaska points on AA metal (if there's availability, there can be outsized value.)
Domestically, not at all. Just used 15,000 miles for a trip in two months that continues to be over $1,000.
My experience has been different here. I feel like Ben’s opinion is a year old now, at least my in markets. I was accruing more AA miles to use for domestic flights which have generally been quite a good value, but i’ve noticed that in the last 6-9 months or so AA redemption rates for their domestic tickets have been absolutely abysmal… in my markets.
I feel like there was a screw tightened across all AA first class pricing and mileage redemption earlier this year… it was like they finally realized what they were leaving on the table… and how much below their competitors their pricing and mileage redemptions were.
When you combine this new change, and their awful recovery in spec ops situations it’s lead to me not flying them much at all anymore.
You are absolutely correct in your assessment. Cathay Pacific's First Class and Business Class award tickets from the U.S. to Hong Kong are non-existent, as are flights on Japan Airlines from the U.S. to Tokyo. Who wants to use miles to fly around in first class domestically?
You start handing out obscene amounts of miles to OPM flyers per trip based on "spend" and inflation happens..... who would've thought!
AA has also drastically raised the dynamic pricing on their own metal and cut off AS and other partner access to more flights, not just the ones within 6 days. Tough times to be an AA flyer when they still aren't up to the quality of UA or DL but eager to match their stinginess.
Good Day Ben: As I reported to you a couple of months ago it looks like AA is not always abiding by their published chart when it comes to Air Tahiti Nui business class seating . When available the cost of a seat beween LAX/US airports and CDG is 57.500 miles + $5.60.
At this time close to departure date those redemptions are available (+ or -) however further away in the future on the same itinerary Air Tahiti Nui make the seats available for 260.000 miles and more. So it looks like you can have access to this partner's seats well in advance if you are willing to redeem well over the published redemption rate.
Finnair used to have a lot of direct business class seating availibility between Helsinki and the US but not so much any more at ay time. Consistently British Airways business seating is available with absurd carrier surchages rates. Alternatively business seating is available in advance when one is able to take flights with 2 or 3 connection without the class of service selected being available on all the flights.
Now the availibility in economy is very good both international and domestic although all direct economy flights require a lot more miles than connection flights...
For exemple you can get a PHX to LHR economy flight for 80.000 miles while connecting flights itineraries can be as low as 21.000 miles.
To be clear I am ot complaining but I remember seeing the same happening in the past with United Airlines while until now American Airlines offering was much better.
The problem isnt overall availability.
its international flights to and from the US like you eluded to. ONce ur out of the US, you can easily find flight between europe, asia, africa easily among one world partners.
First off, I love your blog and appreciate your insights. However, this is a big issue for me.
The question is not whether you should change your valuation, it’s why you haven’t already.
Same issue with Hyatt, you report well on a devaluation, but how can you maintain the same valuation if you believe that it’s been devalued?
Your blog is great, but your valuations are suspect. I believe your intentions are always good, but obviously lowering the value is bad for the credit card referral business. I think you may develop a credibility issue that you should address to maintain your reputation as independent of the referral bonuses you may get from the financial institutions whose products you report on.
In my experience, 1.5c/point for Hyatt is already too low, although I acknowledge that I have more flexibility in my schedule than most which may make it easier to maximise my cpp.
Also worth noting that Hyatt's changes weren't a strict devaluation - categories 1, 2, 3, 5, 6, B and C all charge fewer points at the low end than they did previously.
My experience is that you need to be flexible. Too many people first schedule the time then go looking for availability. Often at peak times as many want to go to warm climate during the holidays.
I've always gotten excellent use out of my AAdvantage miles although other than a trip last summer to SYD I've been banking them for retirement coming up in 2-3 years.
You have to be flexible... do you think people have the entire year put down or something? u want to attend an event that's occurring at a specific time, do u tell the event organizers to be flexible and hold the event when u have found a ticket? family to take care of and multiple other reasons why that old trope of "be flexible" is not realistic for many.
I have ~120K AA miles and they're basically useless for this reason. Japan Airlines flights are impossible to come by.