Carriers Put The Squeeze On Infrequent Flyers' Inactive Miles
Delta Air Lines, United Airlines and US Airways in recent weeks shortened the amount of time frequent flyer accounts can remain inactive, so frequent flyers who are not truly frequent could see their accounts expire. However, account holders need not fly to keep accounts active and accrue miles, as the three carriers said credit card point accrual—which represents more than 60 percent of total miles accrued, according to marketing consultancy IdeaWorks—will keep accounts active.
Delta shortened the inactivity threshold of SkyMiles accounts to two years from three years, citing hopes to reduce administrative costs. As such, "Mileage balances of members who have had no SkyMiles activity within the last two calendar years (2005 and 2006) will expire on Dec. 31, 2006," Delta said in a statement.
United last month also upped its standards for account activity. Mileage Plus accounts now will expire after 18 months, compared with the three-year period customers previously were allowed. This retroactively took effect on July 1, 2006, so United will hold accounts that have been inactive since then to the 18-month rule. Besides flying United and its airline partners or accruing miles by credit card, members can keep accounts active by using miles for travel or merchandise, transferring miles to another member, or donating miles to United's charity program.
US Airways, meanwhile, said effective Jan. 31, Dividend Miles programs cannot be dormant for more than 18 months, down from its three-year threshold. The carrier also said members can keep accounts active through mileage accrual on its airline, credit card or other commercial partners, such as its promotional relationship with ITunes. US Airways said members can "pay a $50 fee and $.01 per mile to reactivate your account."
In addition to earning miles on the carrier or its partners, Delta said members can use credit cards, transfer points from other accounts or purchase miles, in addition to various limited-time promotional offers.
United said the new policy is a boon to frequent and loyal customers because they will "compete with fewer people for award seats, making it easier for them to redeem their miles," adding that about 48 million members are enrolled in the program.
"This change makes Mileage Plus better for customers who are most loyal to United, reduces operating costs and brings our program in line with major competitors," United senior vice president of marketing Dennis Cary said in a statement.
Michael B. Baker contributed to this report.