Flight Attendant Deal & Your Travel Rewards: What's the Connection?

The news surrounding United Airlines and their flight attendants nearing a new labor agreement might seem far removed from your credit card rewards strategy. However, it's crucial to understand how broader industry trends impact your travel expenses and, therefore, your ability to earn and redeem rewards effectively.

When labor costs rise for airlines, these costs are often passed on to consumers through increased ticket prices. This is especially true when flight attendants, who are essential for safe and smooth operations, receive significant pay increases after a prolonged period without raises. A potential deal that makes United's flight attendants the 'best paid in the industry' will likely translate to higher operating expenses for the airline.

How Higher Fares Affect Your Rewards Strategy

Higher ticket prices present both challenges and opportunities for maximizing your credit card rewards:

  • Challenge: Points and Miles Devaluation: If airlines raise fares, the relative value of your existing points and miles may decrease. A flight that previously cost 25,000 miles could now require 30,000 miles, effectively devaluing your rewards balance.
  • Opportunity: Increased Earning Potential: Higher ticket prices mean you'll earn more points and miles per dollar spent on flights, assuming the airline's earning structure remains consistent. This is a key opportunity for those who frequently fly United.

Maximizing Your Rewards in a Changing Landscape

Here's how to adapt your strategy to navigate potential fare increases and maximize your credit card rewards:

  1. Assess Your United Credit Card: If you primarily fly United, consider the United Explorer Card or the United Club Infinite Card. These cards offer bonus miles on United purchases and other travel benefits. Analyze if the annual fees and benefits outweigh the potential increased cost of flights.
  2. Diversify Your Rewards Portfolio: Don't put all your eggs in one basket. Consider diversifying your rewards program by earning flexible points, such as Chase Ultimate Rewards or American Express Membership Rewards. These points can be transferred to various airline partners, providing more flexibility and hedging against potential devaluations within a single program.
  3. Book in Advance: As always, booking flights well in advance typically secures lower fares. Monitor flight prices regularly and use tools like Google Flights or Hopper to track price fluctuations and identify optimal booking windows. Aim to book 2-3 months in advance for domestic travel and 4-6 months for international travel.
  4. Utilize Credit Card Travel Protections: Many travel credit cards offer travel insurance and purchase protection. If your flight is delayed or canceled due to unforeseen circumstances (like labor disputes impacting flight schedules), these protections can help cover expenses.
  5. Redeem Strategically: Evaluate the best redemption options for your points and miles. Compare the cash value of your points to the cost of flights and other travel expenses. Look for sweet spots in award charts or consider using points for upgrades to maximize their value.

The Bottom Line

The potential labor agreement between United and its flight attendants highlights the dynamic nature of the travel industry and the importance of adapting your credit card rewards strategy. By diversifying your rewards portfolio, booking in advance, and utilizing credit card travel protections, you can continue to maximize your rewards and enjoy cost-effective travel experiences, even as fares potentially increase.