The 6 Biggest Myths About Airline Points

For some people, redeeming points is a game they genuinely enjoy. For others, it’s a rabbit hole they’d rather avoid altogether. Over the past ten years, earning and redeeming points has basically been my full-time job.

So today, I’m breaking down 6 common myths about airline points from someone who has made a career out of it.

Whether you're into the points game like myself, occasionally use points, or are still incredibly confused by the process, this article will surely be understandable and beneficial to all.

I know what you’re thinking—of course it isn’t free. You spend money, earn points, and then use those points. That is correct, and airlines normally take that into account when giving out points, because they know they have value. But what I mean is, every single frequent flyer program still charges taxes.

So the common idea that a flight is just 40,000 points quickly falls apart when there’s high tax. Taxes can range from $5 to literally over $2,000. Airlines see this gray area and have started to exploit it. Qatar Airways recently raised the taxes on award redemptions by 30%, with average taxes for business class flights being over $600. You're end up paying for a whole second economy ticket just to use your points.

Using points is not always the better value option. Most airlines tie their points pricing to cash fares (check out our article on Dynamic Pricing), but factors like availability and demand also affect award pricing. Airlines know people will sometimes spend points without thinking, so they can price awards crazy high—because if the passenger doesn’t use points, they’ll just pay cash, which makes the airline more money.

Many people are afraid of the points game. I admit, I didn't want to start either, it didn't seem worth my time (or money). Luckily airlines make it exceptionally easy to search with points. It normally takes just the click of one button before searching on the website. Points mainly just get complex when you're trying to squeeze the maximum value out of them.

Every single frequent flyer program values points differently. Delta has inflated their currency so much that first class awards can go as high as 410,000 one-way. That means the value of each point is lower, averaging around 0.75 cents per mile. In comparison, American Airlines still holds steady around 1 cent per mile.

This is also obvious when airlines offer promotions to purchase miles. Some sell 1,000 miles for $10, while others sell them for $40.

Tools like PointsCalculator and AwardWallet can help determine what your points are worth.

Fenex even allows you to calculate and cash out your points.

Also a pretty obvious one for some, but for those who dont know: flying is no longer the most common way to earn points. Most people earn airline points through co-branded credit cards or by transferring points from flexible credit card programs.

You can also earn reciprocal points on partner airlines in an alliance, although these usually don’t offer the same bonuses (like 11x miles earned for United Premier 1k members).

Points are just like any currency, how you use them makes all the difference. The points community defenitely appears to be tight knit, but dont let that scare you from getting started.

Whether it’s understanding alliances, spotting overpriced redemptions, or knowing when to just pay cash, the more you learn, the better you get. And honestly, there’s nothing more satisfying than booking a $3,000 flight for a tiny fraction of that in points and fees.