Airline miles are one of the best reasons to own a credit card. It’s fun to rack up points with every purchase and save on future travel. But each airline program has its own language and rules, and miles can vary significantly in value depending on how they’re used.
Some ways to use miles are better than others. Flights are still the strongest redemption option—particularly long-haul business or first-class seats—while converting miles to cash, gift cards, retail or experiences typically deliver less value. Values vary because each carrier has its own pricing, airline partners and credit card tie-ins, and award prices shift based on when and where you travel.
If you're flexible, your miles will go further. Jimmy Yoon, the head of points intelligence at award search travel platform point.me, told Newsweek that biggest misconception is what miles are actually worth. Airlines put the easiest option front and center—using miles like cash to pay for flights—but that convenience comes at a cost.
Award tickets booked directly can look pricey, too, he said, because most people travel at the busiest, most expensive times of the week or year. The simplest yardstick is cents per mile: Divide a ticket's cash price by the miles it costs. A $300 flight that costs 20,000 miles gets you 1.5 cents per mile.
Clint Henderson, managing editor of The Points Guy, told Newsweek that he recommends aiming for at least 1 cent per mile—but says using miles beats sitting on them. "Even if you are not getting the best possible value, sometimes it's better than paying cash," he said. "Earn 'em and burn 'em is my motto when it comes to earning points." Like dollars, miles lose value over time as airlines raise award prices.
Most major U.S. airline programs don't let you cash out miles directly. You can use them for hotels, rental cars, gift cards and merchandise, but usually at a steep discount compared with flights. Take 30,000 American Airlines AAdvantage miles.
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