How Much Are Airline Miles Really Worth? Here's What You Need to Know to Make the Most of Your Miles

Travel + Leisure

2 days ago

Before you spend those hard-earned airline miles you've racked up through the years—or sign up for credit cards that help you earn them—you need to know how much each mile is worth. So, how do you determine their value? We break it down below with expert-backed tips for making the most of your miles.
Each airline that has a loyalty program sets the value of its mile or point, and this number fluctuates whenever the airline decides to change it; there's no third-party governing body regulating their value. Still, most airlines value their miles in a similar range. If you were to redeem an airline mile for cash, each mile is generally worth somewhere between 1-1.8 cents, depending on the airline.
You can find various valuation calculators online; according to NerdWallet, values currently range from 0.7 to 1.6 cents per mile on major airlines. Of the big three U.S. airlines—United, American, and Delta—Delta and United have similar values at 1.2 cents per mile, while American Airlines is slightly higher at 1.6. Still, like United miles, Delta miles never expire, while American Airlines miles expire after two years if your account has no qualifying activity. Of course, the exact valuation varies depending on what you spend your miles on.
The value of your miles is also determined by how you're redeeming them. You usually get the best deal if you redeem them on flights with the airline that issued them. They won't go nearly as far if you use them to pay yourself back, purchase gift cards, or book hotels. For example, if I want to purchase a $25 Target gift card with my United MileagePlus miles, it will cost me 8,333 miles. In that scenario, each mile is worth 0.3 of a cent.
I definitely get the best value if I use my Delta SkyMiles to book a Delta flight. For example, a round-trip flight in Delta's main cabin from Billings, Montana (where I live), to Paris in November would cost me 38,000 miles plus $142 in fees. If I were to pay with a credit card, that same flight would cost me $572. In that scenario, each mile is worth 1.1 cents. And I'm honeymooning at Six Senses Con Dao in Vietnam in October. A two-night stay at this five-star resort costs 266,000 Delta SkyMiles. If I booked with a credit card directly through the Six Senses website, those same two nights would cost me $1,722—that comes out to each mile being worth 0.6 of one cent. An empty airplane window seat with a view of clouds.
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If anyone knows how to stretch an airline mile, it's Ben Schlappig, founder of One Mile at a Time. Schlappig has flown every major airline in the world, plus many of the minor airlines. In total, he's logged more than 5.5 million miles at cruising altitude. 'The best way to maximize value with your miles is to not assume that first and business-class travel is out of reach,' he tells Travel + Leisure . 'Premium-cabin travel might cost exponentially more if paying cash, while if you're flexible, it could only cost a mild premium if you're paying with miles.'
Schlappig also recommends looking into airline partnerships—many airlines allow you to book with their partner airlines using miles. 'Not only does this open up new destinations and more award availability,' explains Schlappig, 'but these airlines also often provide a better in-flight experience.'
While you can earn airline miles by flying and/or using an airline-branded credit card, many airlines also allow you to purchase miles. However, don't expect to get a good deal, especially if you're buying a small number. United MileagePlus miles start at $35 for 1,000 miles, the minimum amount you can purchase. That's 3.5 cents per mile, so it only makes sense to purchase miles if you know you can redeem them for at least that amount, or if you're short on cash. For example, if you have 20,000 miles to redeem on a flight that would cost you hundreds of dollars in cash (that you don't have), and you need 21,000 miles to purchase the flight, your best option may be to purchase the additional 1,000 miles for $35 (which, hopefully, you have on hand).
Many airlines also allow you to transfer miles; however, there is usually a minimum amount and a transaction fee, which varies depending on the amount you're transferring. My brother, who doesn't fly often but has a credit card that gets him lots of miles, often gives me his miles at a discount this way—I simply pay the transaction fee. Finally, most airlines also offer the option to donate miles to charity. Keep in mind, however, that you may not get a tax write-off. According to the American Red Cross, which accepts donations of airline miles, 'The IRS recognizes the donation of airline miles or points as a gift from the airline to the charitable organization. Therefore, miles donated to the Red Cross are not considered tax-deductible by the individual donor.'