Update: American has increased their top business class peak rate between JFK-Tel Aviv from 180K miles to 300K miles. Luckily, they still have a decent amount of standard business class peak award availability starting at 125K miles.
Originally posted on 6/10:
Once upon a time, Continental miles were second to none.
After a comeback from industry laughingstock to leader, they joined the Star Alliance. While United played shenanigans with Starnet blocking, Continental had an industry leading website, mileage rates, and mileage availability. Gordon Bethune and his hand-picked successor Larry Kellner were forced out in favor of Jeff Smisek, as they wanted the airline to remain independent. Mr. Smisek took over Continental and merged the airline into United, selecting many of the worst parts of both airlines, but the mileage program remained excellent for a couple of years, at least until the award rates were sent skyrocketing.
But at least skyrocketing award rates meant that airlines still had to announce devaluations in advance, which kept them honest.
In 2019, United charged 75,000 miles for a one-way business class saver award from Newark to Tel Aviv and 180,000 miles for a business class everyday award.
After their award charts were deleted, the saver rate remained the same, but the everyday rate became variable and typically ranged between 125,000-270,000 miles.
And as of this week, United is now charging as much as a whopping 403,000 miles each way, a 50% increase from last week’s top rates. The least expensive everyday award rate is 160,800 miles for travel later in the year.
This is a massive devaluation and it was pulled off without any sort of announcement, as there are no award chart changes to announce due to the lack of an award chart. The price is whatever United says that the price is, there is no more saving up for an award with a set goal in mind. Thanks, Scott Kirby.
At least there are still United Plan B awards, though it’s not easy to get upgraded these days.
That may not be as bad as Delta’s 480,000 Skypesos one-way, but it’s certainly in the same stratosphere, though Delta’s one-way business class rates remain the same on every date through next year.
American still has award charts, and they’re charging between 125,000-180,000 miles for one-way business class between NYC and Tel Aviv.
To be fair, they arguably have the worst business class product on the route, but you’ll still get a lie-flat seat for a fraction of what Delta and United are charging. Alas, it’s not easy to get AA miles unless you use their credit card or took advantage of this insane promotion. Then again, it’s only a matter of time before AA ditches their award charts as well.
I guess we shouldn’t be surprised at massive devaluations when there are no award charts, but thanks to United for reminding everyone why they should accumulate hybrid points for flexibility and not airline miles that can be devalued in the blink of an eye! Do they really wonder why people use a Sapphire card over a United card?
HT: Cheski G.
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53 Comments On "[American Increases Peak Award Rate By 67%] Egregious Devaluation: United Business Class Everyday Award Pricing To Tel Aviv Is Nearing Delta Skypesos Absurdity"
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I somehow recall that there was another airline flying the NYC-TLV route. Can’t recall the name right now.
Irrelevant since they broke up with AMEX and don’t have a valuable US credit card.
jetblue?
Brutal.
If this is the future for United awards, what’s the point in using a Chase card anymore? And will Capitol One still have value with their airline transfer options to United?
There’s still value when saver awards open up:
https://www.dansdeals.com/points-travel/milespoints/hurry-wide-open-united-polaris-business-class-saver-award-space-nonstop-boston-chicago-newark-washington-dc-london/
There’s just so much pent up demand for TLV now…
And that demand will remain for a loooong time. The way to go is to buy cash biz tickets through chase UR or Amex travel and use UR or Amex points at a value of ~1.5 cpp if you have a CSR and/or Biz Plat card.
And I just finished the spend on the 100k ua card
United also stopped the availability for saver awards even in coach, unless you have the United credit card or elite status. I’m assuming this makes plan B even harder if you don’t have card/status. But it also completely devaluated some star alliance points.
This is with all router. Never mind that there is no almost no saver award space for economy, either. Even in XN expanded award space for elites and cardholders.
Hopefully things will loosen up when this pent up travel demand period ends.
TBD…
I see it on flights to destinations that are flying out empty… They seem to treat all flights the same way, you would think they have no analytics in 2022.
Maybe you tell us about plan C & D
They’re both on DDF.
Never saw any mention of that
Oh my! I had 150k United points saved up ready for a vacation. This is a disaster.
Dan, I have about 400K CapOne points, 160K AMEX MR points, and 500K Chase points. Figured I’d be able to take my family to Israel in January via United Polaris business and still have a hefty amount left for hotels. This devaluation is terrible. Other than going American at 250K each R/T, any other suggestions?
What does United want for it now?
Pricing can always change, and we may yet see saver awards open for winter travel. But that will happen closer in.
270K going and 211K coming back!
If you’re willing to be flexible there are still a few options at least on the way back. TLV-EWR on 1/17 is just 103k
Dan, do you think Capital One will ever partner with American for points transfer?
Doubt it, more likely is for Citi to partner up again.
Side question. If I book an award and pay the taxes with the sapphire preferred , would the card insurance benefits apply to my trip ?
Yes
Even though I book it with regular points not hybrid points, correct ?
Yes
Somehow I thing this way is better than saying that-
“we listened to our customers, and in an effort to simplify mileage redemptions United has eliminated black-out dates, and realigned our mileage costs to be more reflective of the true costs our valued customers are expecting to see. We’ve also upgraded the passenger experience by…”
I’m not sure if “SkyRubles” means what you think it means currently. The ruble has been doing pretty well this year, all in all.
I stopped bothering to accumulate airline miles. Saver awards are difficult to find and generally I get much more value from using Chase points at 1.5cpp. Flew United business for 80k Chase this week, while with United points it was over 300k points.
On top of that I earned 5k United miles and PQF/PQP’s towards status.
Why be loyal to any airline when you get the best deals with Chase points?
Sure, that’s the hybrid strategy that I’ve preached for a decade.
Transfer to airline miles on demand, only when it’s worthwhile.
You taught us well
Can you tell me the best chase card to do this. im beyond fed up with united, but I have the most status there and Elal (i fly from TLV) is insane.
The day may soon arrive when it will be cheaper to throw out the 1st pitch at game 7 than fly to TLV…
😀
What stops Chase from devaluing their UR to say .75 cents per point that you are so much more confident in them?
They would have to give warning of that. But that’s highly unlikely and has never happened before.
Is this devaluation only when flying NYC-TLV?
This is a great development for frequent fliers on this route. A popular website made collecting miles and flying the TLV-EWR route in business class a very attainable status symbol that everyone is doing, and killed availability for upgrades. I am a 1k who sits in premium class with 100’s of plus points who never has space available for an upgrade because of all the freebies crowding out the class.
Flyer angry about not getting enough freebies happy others aren’t getting freebies.
Same is happening with hotels! Look at Waldorf Astoria Jerusalem, are used to be able to get 90% of the days for a standard 90 5K know some dates are up to 1 million
I’m trying to get the aa business but I only have chase and Amex points. Any way to transfer?
Anyone?
you cannot transfer
I’m so glad I used almost all my airline miles over the past 14 months, including all my BA and AA points. Four saver business class round trips before the prices quadrupled. I knew this would be the last chance, and it was. I redeemed several coach round trips too, including last minute saver awards to Europe in 2021. Good times.
Capital One is my new friend.
It makes total sense. The increase of cost in points is commensurate with the increase in the cash price.
My 3 aunts made a round trip Newark to Tel Aviv last week for their Mother’s Levaya and paid $3500 R/T to go for a week…
I do not understand two things.
1. When stocks are high and they want to lower the cost they split it, why aren’t the airline industries held to the same standard? The cost to get miles were high, now all of a sudden they value those miles at half the cost?
2. Where are the senators or congressmen that want to get the travelers to like them, and stand up to the airline industry, you will get a lot more votes than $2500 in campaign contrubutions!
Is 125k the new sAAver rate? Or is it just due to the pent up demand
What’s great about united points is that if cancelled it banks right back. Do hybrid points work the same way? If I book a ticket using UR reserve points, what’ll happen if I cancel
That would depend on the ticket you purchase. I used UR points to buy a fully refundable ticket and had no issues when canceling. Points were re-deposited for immediate availbility.
Nowall those shofar blowing united delta etc. can see for themselves that award space is non existent on any airline and the millions of points they give you for signup are just as good as the envelope the cc arrives in
Nice update. Thanks Dan.
Dan’s quote: “To be fair, they arguably have the worst business class product on the route….”
Honestly? I flew United, ElAl, and AA all in a span of one month this year, AA was the best by far,
I’m not big, but you can’t miss a hit in the tray table at every turn when sleeping, besides with AA, not to mention the much more friendly service.