United Airlines has announced changes to its MileagePlus loyalty program, effective for tickets purchased starting April 2, that tie earning rates to credit card ownership. Members without a United card will earn fewer miles, while cardholders receive higher rewards and additional perks. The move aims to incentivize loyalty through a combination of benefits and reduced earnings for non-card users.
United Airlines is altering its MileagePlus program to differentiate rewards based on whether members hold a United credit card, a shift described as a major change in the airline industry's loyalty landscape.
Starting April 2, general MileagePlus members without a card will earn 3 points per dollar spent on tickets, down from previous rates, while those with a card will earn 6 points. For elite members, Premier 1K status holders earn 9 points per dollar, but Premier 1K cardholders get 12 points.
"MileagePlus is designed to reward loyalty to United, and our best customers deserve the best benefits in the industry," said Andrew Nocella, United's chief commercial officer, in a prepared statement.
The changes extend to redemptions, with cardholders receiving an automatic 10% discount on award flights booked with miles; those with Premier status get 15% off. Additionally, members with a United credit or debit card now access "Saver Award" inventory in business class, previously limited to Platinum and 1K members.
Sean Cudahy, senior aviation reporter at The Points Guy, characterized the update as a "carrot and stick approach." He told CX Dive: "I don't think we've seen any airline go as far as United to say, ‘We're going to reward you way more if you have a card, and if you don't get one, we're going to give you fewer miles than you're earning today, and you're not going to get the benefits discounts.’"
Cudahy added: "For years we have seen airlines reward their most loyal customers with elite status. But this is kind of at a whole other level. This is the most we've seen a U.S. airline kind of set up a two-track system, one for anyone who has a credit card and one for anyone who doesn't."
Airlines increasingly rely on credit card partnerships for revenue. For context, Delta Air Lines earned more than $8 billion last year from its deal with American Express. Cudahy noted: "For some airlines, the loyalty arm of the business is a more profitable arm of the business than the business of flying airplanes."
