By Amanda Smith
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Airline miles are one of the best reasons to own a credit card. It’s fun to rack up points with every purchase and save on future travel. But each airline program has its own language and rules, and miles can vary significantly in value depending on how they’re used.
Some ways to use miles are better than others. Flights are still the strongest redemption option—particularly long-haul business or first-class seats—while converting miles to cash, gift cards, retail or experiences typically deliver less value.
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How Much Are Airline Miles Actually Worth?
Values vary because each carrier has its own pricing, airline partners and credit card tie-ins, and award prices shift based on when and where you travel. If you're flexible, your miles will go further.
Jimmy Yoon, the head of points intelligence at award search travel platform point.me, told Newsweek that biggest misconception is what miles are actually worth. Airlines put the easiest option front and center—using miles like cash to pay for flights—but that convenience comes at a cost. Award tickets booked directly can look pricey, too, he said, because most people travel at the busiest, most expensive times of the week or year.
“With a bit more flexibility and know-how, though, travelers can often get several times more value from their miles than what the airline offers through its pay-with-miles option,” Yoon said.
The simplest yardstick is cents per mile: Divide a ticket's cash price by the miles it costs. A $300 flight that costs 20,000 miles gets you 1.5 cents per mile.
Clint Henderson, managing editor of The Points Guy, told Newsweek that he recommends aiming for at least 1 cent per mile—but says using miles beats sitting on them.
"Even if you are not getting the best possible value, sometimes it's better than paying cash," he said. "Earn 'em and burn 'em is my motto when it comes to earning points."
Like dollars, miles lose value over time as airlines raise award prices.
Can Airline Miles Be Redeemed for Cash or Hotels?
Most major U.S. airline programs don't let you cash out miles directly. You can use them for hotels, rental cars, gift cards and merchandise, but usually at a steep discount compared with flights.
Take 30,000 American Airlines AAdvantage miles. That could get you a one-way flight from New York to London or a weeklong car rental there. Redeem the same miles for an Amazon gift card, however, and you'd get only $150, or half a cent per mile.
With United MileagePlus, 30,000 miles could likewise cover a one-way economy flight from New York to London—or just a Samsonite suitcase or a single hotel night in London.
If your miles started as flexible credit card points, transfer partners can stretch them further.
"Transferring your Chase Ultimate Rewards points to Hyatt can make your points go further. Or transferring your American Express Membership Rewards points to Air France/KLM Flying Blue is one of my favorites," Henderson said. "I can sometimes book Air France business class for as few as 60,000 points."
Partner airlines can offer similar deals. AAdvantage miles, for example, can book Japan Airlines or Cathay Pacific.
Also watch for taxes and fees on award tickets. "British Airways and Virgin Atlantic are notorious for adding on exorbitant fees on top of the award price, so a 75,000-point award can come with $1,000 in additional taxes and fees," Henderson said.
What Are the Worst Ways to Spend Airline Miles?
Generally, avoid spending miles on gift cards and merchandise, cheap economy fares that require lots of miles, international awards with big surcharges and upgrades worth less than 1 cent per mile.
"I see a Delta flight that costs 100,000 SkyMiles to fly in coach from New York to San Francisco, but the cash price is only $400. That's a terrible redemption value of just four-tenths of a cent per mile," Henderson said. "In a case like that, I'd just pay cash and save my miles for something better."
Does It Ever Make Sense to Buy Airline Miles?
In most cases, no. Airlines sometimes run big sales on miles, but they come with caveats, such as short purchase windows and caps. Buying can make sense if you're a few thousand miles short of an award you've already found, or if a sale prices miles below the value you'll get when you redeem them.
Ultimately, the best redemption is the one that saves you real money.
"People in our hobby love to brag about getting five cents a mile (or even more) on an incredible business class flight or fancy hotel room, but what would you have actually paid in cash for that flight or room? Sometimes, just using your points for a free coach seat home for Christmas is the best value of all," Henderson said.
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