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How Do Airline Miles Work?
How Do Airline Miles Work?-September 2024
Sep 20, 2024 12:33 PM

If you enjoy flying around the country (or around the world) to visit loved ones, see new places or any other reason, knowing how airline miles work could possibly help you cut costs. In this case, "airline miles" generally refer not to distances flown, but to a kind of currency, created by airline loyalty programs, that you can use for free or discounted flights and other rewards in the future.

Follow this beginner’s guide to airline miles to learn the best ways to earn miles, how to use them for flights and other rewards, and how to maximize your value per point.

What are airline miles?

Airline miles, also called frequent flyer miles, are the airline’s currency that you can use by redeeming them for flights, hotel stays and other rewards. Some airlines call their currency "points" rather than miles, but the concept is the same.

Depending on the airline, your miles can be used to book flights — both on that specific airline and potentially on partner airlines.

Airlines typically allow you to search for cash flights or award flights separately. Here's flight availability with Rapid Rewards, Southwest Airlines's frequent flyer program, for a flight from Chicago to New York City.

If you wanted to view the cash price for flights instead of the airline miles price, you would toggle to the "$" button in the top right.

How much are airline miles worth?

According to NerdWallet's analysis, miles from major airlines are worth about 0.8 to 2 cents each. But the flights you choose may influence your valuation.

For example, Southwest uses a system where your points have a mostly fixed value: The number of points you'll need to book a flight directly mirrors the price of the cash fare.

Other airlines, like American, use an award chart to determine how many miles you’ll need for a flight. These costs are typically based on the regions you’re flying from and to.

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