Frequent Flyer Miles

Frequent flyer miles are a customer loyalty service that is offered by airlines. Flyers may acquire miles (points) through trips with that airline that can be put towards services that airline provides, whether it be free trips or varying status levels within that airline's flight program. Some frequent flyer programs also allow you to trade your miles for merchandise or even cash. Frequent flyer miles are credited automatically each time you fly. Available at most major airport locations, frequent flyer miles are a great incentive. You fly, you rack up miles, and then you fly free.

Frequent flyer miles are also earned by non-travels by using credit cards or other services in order to earn points redeemable for products or services. Frequent flyer miles are usually only usable by the receiver of the miles and are typically non-transferable by contract. Yet, in most jurisdictions, airlines themselves cannot enforce the resale because it is not illegal to make the sale everywhere. Also, you can use your miles to purchase multiple tickets, for example, to buy tickets for your whole family to fly or travel.

Airline miles frequent flyer programs started in the United States in 1981 by American Airlines as a loyalty program to encourage people to use one particular airline for all their travel. It has grown and changed since then and is used by most airline companies today. Airlines know the price of getting a new customer. And they know that it's a whole lot easier and less expensive to keep the customers that they already have. Airlines frequent flyer miles are typically valued at around a penny per mile, so getting ten thousand frequent flyer miles is worth about a hundred bucks. It's worth even more if you're close to getting a free frequent flyer ticket and you really want to take that trip on the airline's tab.

American Airlines is going to be changing some aspects of the American AAdvantage program starting October 1, 2008. The changes include an increase to the amount of miles needed for certain trips and a new $5 fee to be imposed for any frequent flyer travel booked at www.aa.com . American AAdvantage is the largest frequent flyer program in the world. It began with 283,000 members in 1981 and has grown to more than 46 million members.

American Express has morphed its standard green and gold cards into what it is calling new "Rewards" cards. The new cards have the popular Membership Rewards program built in as a core feature of the card, instead of a separate plan (with a separate fee). This will allow you to earn points for travel or merchandise.