New First Class Mileage Strategies Save Up to 80%

November 2009
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Staying ahead in the changing world of loyalty programs and upgrades

It’s tricky for the airlines to discount First Class seats. They don’t want people to think they’re not worth the list price, and they certainly don’t want to upset the corporate market. So instead of cutting First Class fares, the airlines compete by offering more flexible purchase options. In the case described here, that means allowing upgrades from discounted Business Class tickets.

While foreign carriers British Airways and Cathay Pacific have allowed this upgrade option for years, U.S. carriers are just now getting into the act. United’s revised mileage program, announced this summer, allows the upgrade on the lowest Business Class fare, forcing American’s recent announcement that it will join in. (Details: AAdvantage program changes)

American now allows mileage upgrades from discount Business Class fares (code I) which, after a cash “co-pay” fee, result in savings up to 80%. For example, the lowest round-trip Boston-Shanghai I-fare is $3,338. Adding 50,000 miles and a copay of $1,100 brings the total to $4,438. That’s $17,988 (80%) less than the lowest published First Class fare at $22,426, See chart below for more sample savings.

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Need American miles?

You can buy up to 40,000 miles per year directly from the airline. You can also buy 20,000 points annually from Starwood’s Starpoints program. American also accepts miles transferred from Diners Club.

$1,100 Tip: American vs. Cathay

Cathay Pacific’s Asia Miles is one of my favorite programs. Although the airline, a oneworld member, does not fly between the U.S. and Europe, anyone can use the program to get upgrades and mileage tickets on American. Booking upgrades via Asia Miles avoids American’s $1,100 co-pay on Business Class tickets. However, Cathay charges more for mileage upgrades than American does from the U.S. to Europe and other destinations. Depending on the route and whether you have Starwood points to burn, it might be better to use Asia Miles than AAdvantage miles (see chart below).

American vs. United (Revised Program) Mileage and Co-Pay

United is the winner, charging lower co-pays to most destinations and fewer miles to some. To Asia and South America both airlines charge 50,000 miles, however American’s co-pay is $100 more. For domestic travel, both charge 30,000 miles, but United’s co-pay is $150 less. To Europe, American charges 50,000 miles; United charges only 40,000 miles and its co-pay is $100 less.

[aside headline="Share . . ." alignment="alignright" width="half" headline_size="default"]your successful upgrade experience with us and your fellow travelers. If we publish your tip, we’ll extend your subscription a year—our way of saying “Thanks!” Write today: Mr.Upgrade@FirstClassFlyer.com[/aside]

When it Comes to Point Transfers

American is far superior, having transfer agreements with two major credit cards: Starwood and Diners Club.

United is also a Starpoints partner, however its exchange rate is 2:1, costing you twice as many points. Buy the miles instead. You’re allowed 60,000 annually, more than enough to upgrade.

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[["<strong>Region<\/strong>","<strong>Route<\/strong>","<strong>Business Class Fares*<\/strong>","<strong>First Class Fares<\/strong>","<strong>Savings<\/strong>"],["Asia","Chicago - Shanghai","$4,850 ","$20,045 ","$15,195 \/ 76%"],["#rowspan#","San Francisco - Tokyo","$4,600 ","$11,172 ","$6,572 \/ 59%"],["Domestic","Los Angeles - New York","$2,589 ","$5,217 ","$2,628 \/ 50%"],["Europe","Dallas - London","$4,356 ","$7,271 ","$2,915 \/ 40%"],["#rowspan#","New York - Frankfurt","$3,758 ","$14,331 ","$10,573 \/ 74%"],["#rowspan#","Washington, DC - London","$3,616 ","$8,602 ","$4,986 \/ 58%"],["South America","Boston - S\u00e3o Paulo","$4,291 ","$9,036 ","$4,745 \/ 53%"],["#rowspan#","Los Angeles - Buenos Aires","$3,969 ","$10,778 ","$6,809 \/ 63%"]]
<small><em>Round-trip base fares, not including taxes. * Fares include co-pay. </em></small>
[["<strong>Region<\/strong>","<strong>Route<\/strong>","<strong>Miles Needed & Co-Pay<\/strong>","#colspan#","#colspan#"],["#rowspan#","#rowspan#","American AAdvantage","Cathay Asia Miles\n(For travel on American)","United Mileage Plus"],["Asia","Chicago - Shanghai","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["#rowspan#","Los Angeles - Tokyo","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["#rowspan#","New York \u2013 Beijing","50,000 \/ $1,100","n\/a","50,000 \/ $1,000"],["#rowspan#","Washington, DC - Tokyo","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["Domestic","Los Angeles - New York","30,000 \/ $350","45,000 \/ no co-pay","30,000 \/ $200"],["#rowspan#","San Francisco - New York","30,000 \/ $350","60,000 \/ no co-pay","30,000 \/ $200"],["Europe","Chicago - London","50,000 \/ $1,100","60,000 \/ no co-pay","40,000 \/ $1,000"],["#rowspan#","Dallas - Frankfurt","50,000 \/ $1,100","85,000 \/ no co-pay","40,000 \/ $1,000"],["#rowspan#","Los Angeles - London","50,000 \/ $1,100","85,000 \/ no co-pay","40,000 \/ $1,000"],["#rowspan#","Miami - London","50,000 \/ $1,100","60,000 \/ no co-pay","40,000 \/ $1,000"],["South America","Los Angeles - S\u00e3o Paulo","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["#rowspan#","New York - Buenos Aires","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["#rowspan#","San Francisco - Buenos Aires","50,000 \/ $1,100","85,000 \/ no co-pay","50,000 \/ $1,000"],["#rowspan#","Washington, DC - S\u00e3o Paulo","50,000 \/ $1,100","60,000 \/ no co-pay","50,000 \/ $1,000"]]