Home › Miles & Loyalty › Frequent Flyer Programs in the United States: Earning, Burni
Miles & LoyaltyAmerican Airlines made $5.8 billion from its frequent flyer initiative in 2022. In the same year, Delta and United each earned around $7 billion and $6 billion, respectively, from similar programs. That’s an eye-opening demonstration of how a “free” mileage program actually works. In 2026, United Airlines’ MileagePlus program switched to fully revenue-based earning, awarding general members 5 miles per dollar on United-marketed flights, with elite tiers earning up to 17 miles per dollar with certain cobranded cards. This means hiking up those credit card charges and buying premium economy tickets actually pays off more, while bargain seekers accrue far fewer miles. You can take these new rules to the bank, as the industry earns big on "breakage"—the miles points that most members never use.
Frequent flyer miles are a massive money-maker for airlines. Industry analysts have estimated that as much as half of airline profits can come directly from such programs, paid for by the passengers the program is supposed to reward. For example, in 2022, American Airlines generated $5.8 billion from its frequent flyer initiative, averaging about $29.10 per passenger. In a recent financial year, American and Delta each pulled in approximately $7 billion from their frequent flyer programs, while United received around $6 billion. These programs work by devising a series of ways to make you show the airlines love, and then offering you a carrot to do it again. But the carrot is sticky. Many loyal customers skip free flights outright, letting their miles expire without redeeming them. Some frequent flyers have miles they don't know how to effectively use, which creates "breakage miles" the airlines can then sell to anyone, anytime.
If you want to rack up miles, buy premium economy or first-class tickets. The obsession with notches moved to what you invest in your seat. At the same time, the amount of miles accrued or granted for any given flight, relative to the cost, has decreased. Airlines have shifted from awarding points based on actual miles flown to looking at the amount of money spent on flights. United Airlines has become the poster child for that change with its new policy, which awards points based on the amount spent on airline tickets and inflight purchases, and not on the distance flown. The MileagePlus program, United's original frequent flyer program, switched to fully revenue-based earning in 2026, awarding general members 5 miles per dollar on United-marketed flights and up to 17 times that for elite tiers and cobranded cardholders. But the truth is, most airlines have been moving in that direction for a long time. The points-and-miles world has shifted, and travelers need to adapt.
In the past, strategic attempts at elite status hinged on what route the flight took, not on how much you spent. But it’s much more than that. In many parts of the world, the old way of awarding miles is dead, replaced by the revenue-based systems like United’s that track what you actually paid, including perks like "priority boarding" and "seat selection." But if you have gold status, even a flight from New York to Florida will still rack up points for you, so it’s worth keeping your rewards card handy on shorter flights, too. However, loyalty programs aren’t a uniform system, and requirements do change. Before recent changes, American Airlines AAdvantage program tracked three separate elite metrics, including Elite Qualifying Miles, Elite Qualifying Segments, and Elite Qualifying Dollars. In 2019, AAdvantage elite tiers required both a minimum number of miles or segments and a minimum dollar spend. For example, Gold required 25,000 EQMs or 30 EQSs plus 3,000 EQDs, while Executive Platinum required 100,000 EQMs or 120 EQSs plus 15,000 EQDs, all excluding taxes.
So how’s one to navigate this brave new world just by sitting on an airplane? Here’s the bottom line of how miles work: what you earn is now what you spend, and how much a mile can get you is the key to getting anywhere. Frequent flyer programs work best if you decide on a way of valuing what they’re worth to you. One idea is to express miles in terms of cents: the true reward is the dollar value of the miles you own, not the number itself. Reviewing recent rewards flier guides, a popular method employed by analysts to value miles is to calculate the cash equivalent price of a ticket divided by the number of miles needed to purchase it, then to adjust for fees. This is meant to provide a quick and dirty way of deciding whether to burn your miles or pay cold, hard cash. This is why catering to the point-hog customers is no longer worth it for airlines, thanks to the new trends towards spending beyond mere distance coverage. Points and miles aren't worth what they used to be, for sure, but if you can crack the new code, you just might be on your way. So what’s the bottom line on the value of a mile in 2026? It depends on how you’re using them. The days when frequent- flier miles were the same thing as the miles you actually flew are long gone. When airlines started connecting the number of miles you had in your account to how much money you spent, they changed everything. Frequent flyer rewards used to be based on how far you flew. Now, most airline programs give you miles based on how much you paid for your ticket. Elite status qualifications used to be based on the number of miles you flew. Now, most airlines have moved to a model that qualifies you for elite status based on how much you spent or in which cabin you flew. So, how much are miles really worth?
The new revenue-based rewards are an opportunity for frequent flyers who already know how to work the systems, while those less familiar with mile chasing may lose out more than ever. But experts say an often-overlooked way to boost frequent flyer miles is to utilize point capacity built into the cobranded cards from the airlines on purchases. If you're chasing elite status, focusing on the pressure points might be even more important than inquiring about the seats when standing in line. You’ll need to exceed 100,000 U.S. dollar spending to claim top-level benefits, while a smaller (and possibly shrinking) number of route miles will still be required for related perks. But you can add some qualifying dollars towards your totals by using your recognized credit card for everyday expenses. Experts point out that, because of these new revenue-based rules, you might want to focus on everyday spending instead of trying to fly your way to elite status and buying lots of one-way tickets. And you might be better off buying premium products like premium cabins, premium carry-on or seat delivery, because those will pay off more than before. They say that, as airlines have become more focused on revenue rather than miles, earning points from everyday spending at home can be a boost. That’s because many airline credit cards let you spend your way there if you’re in the top tier already. But with the new rules, frequent flyers will need to pay more to reach the same status as before, and they’ll be better off maxing their card bonuses. Many loyalty programs offer a way for cardholders to earn elite qualifying dollars (EQDs) through spending thresholds on branded credit cards. This can potentially help you reach elite status faster or retain it, depending on the program. Keep in mind that the rules for earning and qualifying elite status can change significantly over time, so it’s important to check the current program rules. For example, United has abandoned distance-based miles as a metric for elite status in favor of revenue-based measures. So, chasing status is now primarily about qualifying dollars, segments, and sometimes credit card spend. Add to that the cost-boosting tool of buying seat assignments, baggage and the other add-ons, and the eat-and-drink market, and it’s no wonder that focusing on a new revenue stream has become de rigueur.
Why we published this. A method for valuing miles and deciding when redeeming beats paying cash.
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