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Are airline credit cards worth it anymore?

July 08, 2024
?
10 min read
Airport business people
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Editor's Note

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Airline credit cards have evolved alongside frequent flyer programs for over several decades. Initially, they offered simple bonuses for free flights, but now more options are available to consumers, including transferable points and fixed-value points programs.

The increasing number of airline credit cards has made it difficult for consumers to compare their value. Additionally, these cards are subject to constant changes in benefits, bonuses, fees and program restructuring.

So you might wonder if airline credit cards are worthwhile, especially premium ones with high annual fees.

However, there are still excellent airline credit cards with tailored perks for different types of travelers. So, consider these factors before deciding if an airline card is right for you.

Welcome offers

When evaluating an airline card, you'll want to ensure you find an advantageous sign-up bonus. Take note of the spending requirements and assess if they are feasible. For instance, the Southwest? Rapid Rewards? Performance Business Credit Card currently offers up to 120,000 bonus points: 80,000 bonus points after you spend $5,000 on purchases in the first three months from account opening and an additional 40,000 bonus points when you spend $15,000 in nine months.

KYLE OLSEN/THE POINTS GUY

Additionally, it's important to research and compare the value of different welcome offers, as they often change. This offer on the Southwest Performance Business is the best in the card's history, so now is a great time to apply.

Lastly, it's crucial to have a clear plan for how you intend to use the miles you earn. While earning tons of points or miles can be significant in itself, make sure the rewards you're earning align with your travel and redemption goals.

Related: Here are the best credit card welcome offers

Annual fees

Consider your card's annual fee. Some airline credit cards don't have annual fees. However, these are exceptions. These cards can be suitable for occasional travelers who want to accumulate miles inexpensively without prioritizing day-of-travel perks.

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KYLE OLSEN/THE POINTS GUY

On the higher end, you'll find cards with annual fees of over $500. These fees may be worthwhile for frequent flyers who can make the most of the additional benefits like lounge access and earning elite-qualifying miles or points based on spending.

Most popular airline credit cards charge around $100 per year. Examples include the AAdvantage Aviator Red World Elite Mastercard ($99), the JetBlue Plus Card ($99), the Southwest Rapid Rewards? Premier Credit Card ($99) and the United? Explorer Card ($0 intro annual fee the first year, then $95). Some cards also offer anniversary bonuses to soften the blow of the annual fee.

When your annual fee is due, consider if your card's perks offset the cost of keeping it for another year. And make sure to ask for a retention offer.

The information for the AAdvantage Aviator Red, JetBlue Plus and Southwest Rapid Rewards Premier cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: Best Delta credit cards

Earning categories

In the past, airline cards tended to earn double miles on purchases with their associated airline. However, to compete with non-airline travel rewards cards, many airline credit cards now offer multiple miles per dollar at various merchants like restaurants and grocery stores.

MZACH GRIFF/THE POINTS GUY

When considering or already having an airline credit card, check the bonus miles categories and see if they align with your spending habits. For example, it's probably not worth having a card that earns 2 miles per dollar on dining if you primarily spend on groceries.

Some top earners include the United Explorer Card, which earns 2 miles per dollar on hotel and dining purchases. The Citi? / AAdvantage? Platinum Select? World Elite Mastercard? card earns 2 miles per dollar at gas stations and restaurants, while the JetBlue Plus card gives 2 points per dollar at restaurants and grocery stores.

Related: The best rewards credit cards for each bonus category

The information for the Citi / AAdvantage Platinum Select World Elite Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Travel benefits

Airline credit cards offer various benefits for travel, including waived annual fees, sign-up bonuses and money-saving perks. These perks can include free checked bags, priority boarding and discounts on inflight purchases like food and Wi-Fi.

CHRIS DONG/THE POINTS GUY

Even if you save just a few hundred dollars a year, it can still be worthwhile. These benefits are valuable based on how much you utilize them, and while some potential savings may seem substantial, they may not apply to everyone's usage patterns.

Related: 8 elite status benefits you're not using but should

Elite status

Airline elite status is important to many travelers, and using a cobranded airline card can help bridge the gap if you're close to falling short. However, only a few airline credit cards offer elite-boosting opportunities, usually with high annual fees. But if you're a frequent flyer aiming for the next status tier, it could be worth carrying an airline card.

KYLE OLSEN/THE POINTS GUY

For example, the JetBlue Plus and JetBlue Business cards grant automatic Mosaic status to cardholders who spend $50,000 or more in a calendar year.

The information for the JetBlue Business Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

If you're unsure about this benefit or already achieved your desired elite status independently, consider exploring another airline to enjoy elite-style perks when not flying your primary carrier.

Related: Credit cards that can help you earn airline elite status

Companion tickets

Carrying an airline credit card can provide significant value through companion ticket benefits. These benefits vary among airlines and cards, so reviewing the details is crucial.

The Alaska Airlines Visa? Business card offers an annual companion fare starting from $122 ($99 fare, plus taxes and fees from $23) for economy class, each account anniversary after spending $6,000 or more in purchases the prior year. This benefit alone can save you hundreds of dollars each year.

KYLE OLSEN/THE POINTS GUY

If you frequently travel with a partner, family member or colleague, it's worth considering a card with companion benefits for significant savings.

Related: 43 real-world family travel tips that actually work

Award chart devaluations

We recommend evaluating the airlines' frequent flyer programs to ensure their long-term value. Many programs, including Delta SkyMiles, United MileagePlus and Alaska Mileage Plan, have undergone significant devaluations in recent years. Some airlines, such as Lufthansa Miles & More and Singapore Airlines KrisFlyer, have also changed their award charts.

KYLE OLSEN/THE POINTS GUY

Many programs have eliminated their award charts and now dynamically price tickets. Before committing to a new frequent flyer program and signing up for a credit card, research how the program has evolved in recent years. This will help determine if the miles you earn from welcome offers and everyday spending will provide your desired travel rewards.

Related: Dynamic airline award pricing is out of control — here are some ways to beat it

Application restrictions

Major credit card issuers have implemented restrictions to prevent excessive card churning, which may impact your ability to open new cards and earn sign-up bonuses. Knowing these rules is important to avoid being denied or ineligible for bonuses.

KYLE OLSEN/THE POINTS GUY

Chase's 5/24 rule is well-known, affecting popular cards like the United Explorer Card and Southwest Rapid Rewards Premier Credit Card. Generally, if you've opened five or more personal credit cards (from any bank) in the past 24 months, Chase may not approve you for a new card.

Amex has become stricter with eligibility rules, especially for popular cards like the Delta lineup, limiting bonus eligibility to once per lifetime on each product. However, they have a welcome bonus qualification tool to check eligibility before applying.

Citi has specific limitations for its AAdvantage cards. If you've opened or closed another Citi / AAdvantage card within the past 48 months, you won't receive the bonus on a new card. If you have one open for over 24 months, it's advisable to apply for another before closing it to avoid disqualifying your application.

Related: The ultimate guide to credit card application restrictions

Transferable points as an alternative

To quickly accumulate frequent flyer miles without relying on specific travel benefits, consider applying for a card that earns transferable points instead of an airline card.

KYLE OLSEN/THE POINTS GUY

Several transferable points programs are available, such as American Express Membership Rewards, Bilt Rewards, Capital One miles, Chase Ultimate Rewards, Citi ThankYou Rewards and Marriott Bonvoy. These programs allow you to transfer points to various airline partners, providing flexibility and protecting you from sudden award chart devaluations.

Furthermore, credit cards associated with these programs offer bonus-earning opportunities across multiple categories like gas, groceries, dining and general travel purchases, not just airfare. This makes them superior earners compared to many airline credit cards.

Bottom line

Deciding whether to carry an airline credit card depends on a few important factors.

First, evaluate whether the welcome offer provides compelling value. Then, consider if the ongoing benefits, such as day-of-travel perks and discounts, are valuable enough to outweigh the annual fee. Lastly, evaluate if a rewards card earning transferable points aligns better with your spending habits and travel preferences.

Read more about the best airline credit cards here.

Related: Here's why the Venture X and Amex Gold are the only 2 cards in my wallet

Featured image by DUKAI PHOTOGRAPHER/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.