Here’s our annual report card on the five major U.S. airlines’ mileage upgrade programs (economy to Business Class) to Europe. We moved this report card up because two carriers, United and US Airways, inaugurated new programs last month, and one, Continental, switched to the Star Alliance. Grades are based on the curve.
Major Change: Surcharges. Every carrier except Delta has imposed them this year. Still, Delta received the lowest grade.
One Strategic Move to Remember: With 50-day advance Business Class fares ranging from $2,200 (New York-London) to $3,800 (Los Angeles-Rome), and with 2-for-1 fares starting at well over $8,000, you should use miles to upgrade from discounted economy to Business Class.
American: B-
Steady as she goes: No major changes here. American still requires 50,000 miles, round-trip, and imposes a $700 surcharge. AA might test the waters with program changes soon.
Continental: C
It switched to the Star Alliance, but did not make major changes to its upgrade program. It still requires 40,000 miles round-trip, and the surcharge can be as high as $1,000 on discount coach fares. Another program to keep an eye on in 2010 for possible changes.
Delta: D-
Not steady, but stale. And consistent: It’s gotten a D- from us for years because of its very inflated upgradeable fares. Round-trip upgrades cost 50,000 miles, but they’re only permitted with M and B fares—coach fares that can cost almost as much as Business Class, if not more. They usually start at about $2,000. (Why didn’t Delta just adopt Northwest’s upgrade program when it absorbed the carrier?)
United: C+
Here’s the new formula at United: Any economy fare + miles + surcharge = upgrade. United now charges 40,000 miles round-trip (20,000 fewer than before) and a surcharge that can be as high as $1,000. In some cases, being able to upgrade from lower fares brings overall savings, but most often it doesn’t offset the higher cost resulting from the surcharge. Under United’s old program (H and M upgradable fares, no surcharge), round-trips on some of the routes shown in the chart below were $500 to $600 less costly than with the new program: Chicago-Paris was $761; Los Angeles-Frankfurt, $902; New York-London, $600. United’s new program merits a two-letter-grade drop from the B we gave its predecessor over the last few years, but changes among the competition keep it in the middle of the class.
US Airways: B-
The only airline to raise its grade. The new program allows upgrades from any economy fare for 60,000 miles round-trip and a $600 surcharge. This is a better deal than before, when upgrades were allowed only on fares of $1,400 or more. Under US Airways’ old program, round-trips on the routes in the chart below were: Chicago-Paris, $1,917; Los Angeles-Frankfurt, $1,246; New York-London, $1,140; Philadelphia-Rome, $1,098. With the new program, prices have dropped $30 to $760 and are now the lowest among U.S. carriers. US Airways earns the same grade as American because, although it charges 10,000 more miles than AA, its fares are lower.
Comparing Mileage Programs: Round-Trip Upgradeable Economy to Business Class Fares
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