It has been two years (July 2009) since we graded the mileage upgrade programs of U.S. carriers to Europe, on upgrading the lowest economy class fare to Business Class. And with one airline merger (Delta-Northwest) completed in January 2011, and another (United-Continental) in the final stages, the topic is hot because mergers usually mean fewer upgrade opportunities. For this Report Card we included international mileage upgrade programs if they offered a savings over the U.S. carrier’s program.
[aside headline="Sample Savings when using miles for an upgrade: 69%" alignment="alignright" width="half" headline_size="default"]On the Los Angles-London route, Virgin Atlantic’s upgrade-able economy fare is $879 (B class, plus about $565 in taxes and fees) plus 60,000 miles, whereas the lowest 50-day advance-purchase Business Class fare is $3,721 (plus about $910 in taxes and fees). If you use miles to upgrade the latter, you get a 5.3¢ return on your miles. [The math: $4,631 (Busi-ness Class fare plus taxes) - $1,444 (economy fare plus taxes) = $3,187/69% (savings) ÷ 60,000 (miles required) = 5.3¢.][/aside]
What’s Changed?
Two major U.S. airlines have, over the past few years, started imposing mileage upgrade surcharges; United, up to $1,100, and US Airways, $600. The extra cost can make an “international airline mileage upgrade program” more advantageous, as they usually don’t levy a surcharge like U.S. programs.
Good News: Using miles to upgrade is still smart when published Business Class fares are high. International airline mileage programs eschew surcharges.
Bad News: Every U.S. airline except Delta now imposes a surcharge on miles used to upgrade. (Delta’s trick is to minimize the number of economy fares that can be upgraded, a “less formal surcharge.”) Going for mileage upgrades during Business Class promotional travel periods (the holidays and summer) is a bad idea because at these times Business Class fares often cost as much as an upgradable economy fare, plus you would be out the miles used for the upgrade and the miles you would have earned for paying Business Class.
Ground Rules for Calculating the Grade
The marks are based on four criteria: low economy upgradable fares (gets extra points, since it’s the basis for this report card); ease of earning miles without flying the carrier; number of credit-card-transfer partners; and the return on miles.
Air France (SkyTeam) / Flying Blue: B-
Allows upgrades on K, B, and Y fares for 65,000 miles and is an especially great value in low-season, when many of its upgradeable fares are $700 to $900. No cash surcharge.
American Airlines (oneworld) / AAdvantage: B-
Allows upgrades on any published fare plus a $700 surcharge and 50,000 miles. It is one of only two mileage-upgrade programs that have not increased miles or surcharges since 2008.
British Airways (oneworld) / Executive Club: B+
Offers two upgrade options to Business Class: On any Premium Economy fare for 25,000 to 32,500 miles round-trip, and from H, B and Y fares (50,000 to 65,000 miles) which usually offers a better cash value but requires more miles. The Premium Economy fare upgrade can be an exceptional value during the low-season, when applicable fares are as low as $700.
Cathay Pacific (oneworld) / Asia Miles: B
Has the advantage of offering upgrades on two major airlines to Europe: American and British Airways. In most cases the savings are greatest on AA because it does not impose a surcharge (AA charges $700). Allows upgrades on American’s H, B, and Y fares (50,000 to 70,000 miles) and on all of BA’s Premium Economy fares (22,500 to 30,000 miles).
Continental OnePass & United Mileage Plus (Star Alliance): C
(Same rules; same grade) As of June 15, the two airlines offer the same mileage-upgrade program to Europe. Allowing them on any published fare, with surcharges levied inversely according to the fare paid. Thus, the lowest fares incur a surcharge of $1,100, on top of 40,000 miles, while higher fares are $600 and 40,000 miles.
Delta (SkyTeam) / SkyMiles: D
Allows upgrades on M and B fares for 50,000 miles, and as of last month was one of the first major U.S. airlines to offer a 50% discount on the rate—25,000 miles round-trip until Aug. 31. It is the only other major U.S. program that has not changed in the past few years, and the only U.S. program that does not impose surcharges. The trade-off is that many upgradeable fares are well over $2,000, in effect a backdoor surcharge.
US Airways (Star alliance) / Dividend Miles: B-
Allows upgrades on any published fare, for 60,000 miles and a $600 surcharge. It is the second major U.S. mileage program that has introduced surcharges.
Virgin Atlantic (no alliance affiliation) / Flying Club: B-
Allows an upgrade on premium economy class S and W fares for 40,000 miles. Upgrades from B and Y fares (60,000 miles) often offer a better cash value. The major drawback is that it is only for travel to London. No surcharge levied.
Mileage Upgrade Program Comparison to Europe: Economy to Business Class
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