When Is the Right Time to Purchase Airline Miles?

There are numerous ways to increase your frequent flyer balances. The most straightforward method appears to be taking flights—many of them. However, the reality is that most airline miles are earned while on the ground. They accumulate through various means such as welcome bonuses from co-branded credit cards, regular spending on those cards, and earning opportunities via partnerships with hotels, car rental services, shopping portals, and more.

Another method to acquire substantial amounts of frequent flyer miles is by purchasing them directly from the airline. All airlines provide the option to buy miles through their loyalty programs on their websites. While the concept of buying a large number of miles might seem unusual, in certain situations, it can be a financially savvy decision that saves you hundreds or even thousands on airfare. Here are some scenarios where buying miles could be beneficial, along with key points to consider if you choose to go this route.

Only Purchase Miles During Promotions

Airlines generally sell their miles at a premium price, usually ranging from 2.5 to cents per mile. This can lead to a significant expense for a bulk purchase (e.g., $2,500–$3,500 for 100,000 miles). Therefore, as a rule, buying miles at full price is not recommended. However, promotions and bonuses can enhance the value. For instance, in late January 2023, Air Canada Aeroplan had a promotion where purchasing 60,000 or more points resulted in a 100 percent bonus, effectively reducing the cost of an Aeroplan point from 2.6 cents to 1.3 cents (US$). Similarly, during two weeks in February 2023, American Airlines offered discounts of up to 45 percent on purchased miles, with the full discount available only when buying 150,000 AA miles, reducing the price from cents to 2.07 cents per AAdvantage mile.

Typically, you’ll need to purchase a larger number of miles to qualify for the full promotional discount, so make sure to read the promotion details carefully to avoid any surprises (and potentially higher costs). Additionally, remember that not all loyalty programs are created equal: 100,000 AA miles differs from 100,000 Air Canada Aeroplan points. To understand this better, think of miles from different programs as different foreign currencies.

Calculate the cost-effectiveness: Buy miles when it makes financial sense

Overall, the prices of airline tickets in both cash and miles have surged over the past year, yet there are still some excellent deals available for mileage redemptions. This is particularly true for first or business class flights on international airlines that partner with North American carriers.

For instance, in January 2023, this writer redeemed 170,000 Alaska Airlines miles for a round-trip business class flight from Miami to the Maldives (via Doha) on Qatar Airways. Many of those miles were accrued during sales that offered 60 percent bonuses on purchased miles, which effectively lowered the cost of Alaska miles from 2.95 cents to 1.85 cents each. Ultimately, my round-trip fare amounted to $3,145 (170,000 miles at 0.0185 cents each) plus $145 in taxes and fees, totaling $3,290. In comparison, the cheapest round-trip business class ticket on Qatar Airways at that time ranged from $5,500 to $7,400 based on travel dates. My ticket purchased with miles was nearly half the cash price.

However, before you assume that miles are superior to cash, keep in mind that securing this coveted ticket required significant planning and flexibility. I spent almost an entire year searching for mileage ticket availability using Alaska’s flexible search tool, identifying just a few dates (over 330 days) with mileage tickets priced at the lowest rate of 85,000 each way in business class between the United States and the Indian subcontinent. Once those seats were located, I checked the cash price of the ticket using Google Flights and determined that buying miles was the best option for my chosen dates. On other dates in January 2023, the ticket price soared to 340,000 points round-trip, making the purchase of miles completely impractical.

While extensive searches and calculations can yield great deals on international business (and occasionally economy) tickets, this effort often proves futile for North American routes, in both classes. Most airlines in North America employ dynamic pricing for domestic flights, causing the mileage costs to be higher than cash prices, even when considering promotional rates for miles.

That said, those willing to shell out for refundable domestic tickets (which can be twice the cost of nonrefundable options) might want to explore paying with miles. Why? Many frequent flyer programs, including Delta, United, and American, permit penalty-free cancellations of mileage tickets with a full refund of miles. Essentially, you’re obtaining a refundable ticket by purchasing through mileage programs.

Avoid hoarding miles unless you're an expert

When you come across a promotion for discounted miles, you might wonder: Is it wise to buy airline miles on speculation? The short answer is no, unless you’re very confident about maximizing their value—and soon. Unfortunately, miles aren't becoming more valuable. In fact, there have been several unfavorable changes in frequent flyer programs recently, including mileage devaluations and reduced award ticket availability. It seems like every few months brings more disappointing news. One recent change is American Airlines’ phase-out of static MileSAAver and AAnytime awards by spring 2023, shifting to a more aggressive dynamic pricing model where customers usually end up paying more miles. We don’t anticipate improvements, particularly as more individuals join loyalty programs and airlines strive for higher profits.

Exercise caution when adding to your mileage balance

If you're close to the mileage needed for an award ticket, you might consider purchasing the last few thousand miles to complete your balance. Be sure to do the math to determine if this is a sensible decision.

Imagine you’re looking at an AA flight from Miami to Boston in mid-June priced at just 12,500 miles in economy. You have 10,000 miles in your AAdvantage account. AA is running a promotion similar to the one from late February 2023, offering up to 45 percent off on purchased miles. You think it could be smart to buy the remaining 3,000 miles (with mile purchases needing to be rounded to the nearest 1,000). However, for such a small amount, the discount is only 5 percent (not the full 45 percent for buying 150,000 miles). When you factor in the high retail price of miles along with a processing fee, it totals $107.24 for 3,000 miles. The outright cost for this specific ticket would be $159. Therefore, spending $107.24 just to have enough miles for a redemption ticket isn’t a wise choice.

Key Takeaways

There are situations where purchasing airline miles is a good—even fantastic—option, but often, it’s not worth it.

When airlines have sales on miles, always check award availability and calculate if the promotion is financially beneficial for you. Scoring a business-class ticket at a bargain with miles, enjoying a lie-flat seat, premium champagne, and exquisite meals is fantastic. Conversely, there’s nothing worse than paying more in miles than the ticket's cash value.