US Airways drops mileage minimum for frequent fliers

As airlines look for ways to cut costs and increase revenue, US Airways said Thursday it would make it harder for passengers to earn frequent-flier miles that can be used for free tickets and seat upgrades.

The airline will no longer award a minimum of 500 miles for a flight, eliminating a long-held industry practice that has allowed frequent fliers to more quickly accumulate miles for award travel even on short trips.

The change in policy is the latest in what analysts said was a move by airlines to limit and restrict frequent-flier programs, including new fees and requirements, that has made accruing miles and obtaining free tickets harder than ever.

“What we’ve been seeing over the past seven years or so has been a continuing devaluation of frequent-flier programs, sort of like death by thousand cuts,” said Tim Winship, editor-at-large for Smartertravel.com, a travel advice website. “US Air is breaking new ground with this.”

No major carrier followed the move Thursday though several travel consultants said it may be only a matter of time as airlines contend with rising fuel costs and a slowing economy.

American Airlines, which has the biggest frequent-flier program with 58 million members, said it was monitoring the development and its “impact on the industry,” but declined to say whether it would consider a similar move.

“At this time we have made no changes in our AAdvantage [frequent-flier] program,” American spokesman Tim Smith said Thursday. “For both competitive and legal reasons, we never discuss any future actions.”

In addition to cutting the 500-mile minimum award, US Airways said it would impose a $75 booking fee for customers who redeem miles fewer than 14 days before beginning their award travel. That change takes effect with flights beginning May 1.

A passenger enrolled in the airline’s Dividend Miles program will receive credit for only the actual miles flown, a policy change that will hit business travelers and commuters the hardest.

A traveler flying from Los Angeles to Phoenix, for instance, will get credited with 370 miles, compared to at least 500 miles under the current practice.

US Airways said it was making the changes as a way to “offset record fuel prices,” which could add $800 million to its fuel bill this year. The airline is the nation’s fifth-largest, with headquarters in Tempe, Ariz.

“When you have this kind of operating reality, we have to look at all areas of the business to generate revenue,” said Morgan Durrant, a US Airways spokesman, adding that a passenger flying on a free award ticket is taking a seat away from a paying consumer.

Awarding at least 500 miles even if the flight is far shorter has been standard practice for airline frequent-flier programs since they were created in the early 1980s. It was seen as a way to boost passenger loyalty to a particular carrier no matter where they flew.

But over the last decade airlines have steadily chipped away at their programs, increasing the number of miles needed to earn a free ticket to 25,000 miles from 20,000, for example, or limiting the times when a free ticket can be used or shortening the period during which miles can be redeemed.

“It’s no longer about loyalty, which is why the program was invented,” said Randy Petersen, publisher of InsideFlyer .com, a website for frequent fliers.

So far there has been no decrease in people signing up for frequent-flier programs, though many in recent years have been joining through airline credit cards, which award a mile for each dollar charged on the card.

But Winship said he was seeing “a gradual disengagement on the part of consumers” from these programs. “The interesting question is how much further can the airlines go in the direction of stripping the value of these programs before we see a wholesale exodus.”

Charles Fields, a disc jockey from Huntington Beach and a frequent flier, said he no longer felt “faithful” to his airline.

“It seems like every year they’re changing things and taking things away so it becomes more difficult to use the awards,” said Fields, who racks up more than 100,000 miles a year and is considered an “elite” frequent flier. “People will start flying with whomever has the cheapest fare because these programs won’t matter anymore.”

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peter.pae@latimes.com