United Airlines raises spending requirements to earn frequent flyer status

United Airlines raises spending requirements to earn frequent flyer status


A United Airlines Boeing 757 departs from Los Angeles International Airport en route to New York on Sept. 19, 2024.

Kevin Carter | Getty Images

United Airlines customers will have to spend more to reach frequent flyer status next year, the latest move by the carrier to increase profits and give an exclusive feel to the increasingly crowded top ranks of airline loyalty programs.

The thresholds to earn elite status on the airline’s MileagePlus program are going up about 25% and include either spending on a co-branded card or a combination of spending and flying. The status earning requirements and accompanying perks earned next year will be valid in 2026.

United, American Airlines, Delta Air Lines and other carriers have spent years changing their loyalty programs to reward travelers more based on how much they spend rather than how far they fly. Co-branded credit cards are a crucial business for airline profits, as banks pay carriers when consumers swipe those cards.

Elite status comes with perks like free upgrades (when available), earlier boarding, better seat selection and access to extra legroom options. Airlines have grappled with increasing numbers of high-spending customers, which have led to crowded lounges and swarms of travelers in early boarding groups.

The lowest level status, Silver Premier in 2025 will require customers to earn 5,000 premier qualifying points, or PQP, and fly 15 qualifying flights, up from 4,000 premier qualifying points and 12 qualifying flights.

Travelers earn one PQPs for every $1 they spend on United and other qualifying flights.

Earning Silver status only by spending— meaning getting to that status without the qualifying flights — will go for 6,000 points, up from 5,000. That would mean customers could spend $6,000 on United flights up from $5,000, regardless of the number of flights they take. Customers will also earn 1 PQP for every $20 they spend on co-branded cards, though some of the options in its credit card portfolio will offer 1 PQP for every $15 spent.

Here are the changes:

  • Silver status: 5,000 PQPs and 15 Premier qualifying flights, or simply 6,000 Premiere qualifying points alone. (Up from 4,000 PQPs and 12 PQFs, or 5,000 PQPs alone)
  • Gold status: 10,000 PQPs and 30 PQFs, or 12,000 PQPs. (Up from 8,000 PQPs and 24 PQFs or 10,000 PQPs alone)
  • Platinum status: 15,000 PQPs and 45 PQFs, or 18,000 PQPs. (Up from 12,000 PQPs and 36 PQFs, 15,000 PQPs alone)
  • 1K: 22,000 PQPs and 60 PQFs or 28,000 PQPs. (Up from 18,000 PQPs and 54 PQFs or 24,000 PQPs).
The rise of airport lounges



Source

Carvana raises 2024 earnings guidance after topping Wall Street’s Q3 expectations
Business

Carvana raises 2024 earnings guidance after topping Wall Street’s Q3 expectations

A Carvana sign and signature vending machine in Tempe, Arizona. Michael Wayland | CNBC Carvana on Wednesday raised its 2024 earnings guidance after the online used-car retailer significantly topped Wall Street’s third-quarter expectations. Here’s how the company performed in the third quarter, compared with average estimates compiled by LSEG: Earnings per share: 64 cents vs. 25 […]

Read More
Starbucks is about to report earnings. Here’s what to expect
Business

Starbucks is about to report earnings. Here’s what to expect

Brian Niccol speaking on CNBC’s Squawk Box on Oct. 30th, 2018.  Anjali Sundaram | CNBC Starbucks is set to share more details about its fiscal fourth quarter after the bell on Wednesday. The coffee giant shared its preliminary quarterly results on Oct. 22, showing that its sales fell for the third consecutive quarter. Here’s what […]

Read More
Pending home sales took an unexpected leap higher last month, but rates are now much higher
Business

Pending home sales took an unexpected leap higher last month, but rates are now much higher

Signed contracts to buy existing homes in September jumped a surprising 7.4% compared with August, according to the National Association of Realtors. Analysts had been expecting about a 1% gain. These so-called “pending” sales were at the highest level since March and 2.6% higher than September of last year. Since pending sales are based on […]

Read More