Your Points Are Constantly Losing Value. Let Us Explain How

When we say that airline and credit card points keep losing value, or are depreciating, that might sound like an exaggeration. Who decides that? And if it’s really true, why does no one seem alarmed?

Let’s break it down.

The idea that your points are losing value by just sitting in your account isn’t just obvious, its actually an integral parts of how loyalty programs operate to make money.

Here’s how

• Unlike dollars, points aren’t tied to any government or central regulation. Airlines and credit card companies can issue unlimited amounts of them. Every time they hand out sign-up bonuses, offer 5x category bonuses, or partner with retailers, more points enter the system.

That’s inflation, plain and simple.

Just like printing more money devalues a currency, “printing” more points makes each one worth less.

If you step in a grocery store today, you’ll understand what I mean. Let’s say six months ago you could buy a dozen eggs for $3. Today, they’re at least $6. For a lot of socio-economic reasons we don't have to go into, the government is printing money. By creating more money, your dollars are worth less and less. The result? Your grocery runs have a lot more budgeting involved. There are good and bad reasons for this (which we won’t get into), but that's inflation.

The same applies to airline miles. Except it’s worse—because:

• Airlines don't have to announce inflation.
  


• They control both the supply (how many points they issue) and the demand (how they let you redeem them).


• They can change redemption prices overnight.>

This makes points a highly inflationary currency, with far less consumer protection than dollars.

A devaluation is when an airline or credit card program increases the number of points or miles required for a redemption.

Examples:

• Avianca LifeMiles: In March 2025, business class flights from the U.S. to Europe on partners like United went from 80,000 miles to 100,000 miles. That’s a 25% hike—overnight.
  
  
• Emirates First Class: In early 2023, awards were priced at 85,000 miles one-way. By the end of the year, they had jumped to 169,000 miles—a shocking 99% increase.

These aren’t one-offs. Every single airline loyalty program has devalued over time, and most do so quietly and without notice. If you dont believe me just look at any award comparsion from 2018 and now.

Airlines have complete control over:. The earning structure is pretty solid:

• How many points are issued


• What you can redeem them for


• What those redemptions cost

They don’t need to follow fixed award charts. Many now use dynamic pricing, which means redemption prices fluctuate based on demand. You might see a business class flight cost 65,000 miles one day… and 210,000 the next.

Since airlines don’t owe you anything when it comes to award pricing, they optimize for revenue—not your loyalty.

In fact, two U.S. senators launched a formal investigation into deceptive practices in airline loyalty programs, prompting a follow-up from the Department of Transportation.”

You can find both articles here

You wouldn’t sit on $10,000 in a savings account during a period of 10% annual inflation without at least thinking about investing it, right?

Apply the same mindset to your points:

• Don't hoard. Points are not a retirement fund.
  
• Earn and burn. Use them while they’re valuable.
  
• Diversify. Transferable currencies (like Amex or Chase points) give you way more flexibility.
  
• Stay updated. Watch for devaluations and burn before they hit.

Points and miles are still a great way to travel for less, but only if you stay ahead of the game. It's clear they're not meant to be saved forever, and the longer you hold onto them, the more likely they are to lose value. Think of points like milk, not wine: they don’t get better with age. So use them, enjoy them, and don’t let airlines quietly take away what you’ve earned. And we’d be remiss if that doesn't suggest, selling them is also a great option at Fenex.