Don't Wing It with Frequent Flier Programs

By Kathy Kristof

Forget about beverage selections. The flight attendant on a recent US Airways flight to Denver was peddling credit.

Any passenger willing to sign up for the airline's frequent flier reward credit card would get 30,000 bonus miles -- enough for a domestic flight -- plus a litany of perks longer than the drink menu. But you had to act fast. The flight attendant said you'd get the promised perks only if you signed up while still in the air.

But limited-time offers almost always come with a catch, and this one had two: The card had an $89 annual fee, and US Airways has the worst record of reward seat availability among 24 major carriers, according to the recently released ezRez Reward Seat Availability Survey.

As summer travel season gets underway, consumers will probably be barraged with all sorts of frequent flier pitches, many of which include some type of rewards credit card. Those cards usually demand annual fees, so consumers need to carefully examine the frequent flier programs to avoid getting stuck with all fees and no freebies.

An analysis of what makes a great frequent flier program doesn't start and end with the availability of free seats, said Jay Sorensen, president of IdeaWorks, a Wisconsin company that conducted the research by peppering the world's 24 largest airlines with 6,720 requests for free seats. There are several other factors to consider.

Here's how to get the best lift from your miles.

Price or perks:

Frequent flier programs reward loyalty, but if you're all about price, you need to ditch loyalty and fly on the carrier that offers the best deal. Of course, you can join any and all airlines' frequent flier programs, because joining is free, said Brian Cohen, author of a blog for frequent fliers called the Gate.

But don't get one airline's credit card if you're a multiple airline person.

Flight availability:

If you focus on just one or two airline frequent flier programs, the ease of getting a free ticket is a key deciding factor. For example, if you fly frequently to Phoenix, you'll find that Southwest Airlines offer the most flights to the city.

But it's vastly easier to get a free ticket with Southwest. Moreover, if you book in advance and qualify for a cheap fare, Southwest will deduct fewer points from your frequent flier account than US Airways.

Is Chicago your main destination? Both American Airlines and United Airlines have hubs in the city, offering hundreds of flights. But 71.4 percent of those requesting a free ticket from United's frequent flier program receive it, while only 62.9 percent can say the same about American.

Partner airlines:

If you are saving up miles for an international trip, you might want to consider an airline's partners. For instance, while American might not score particularly high on the availability of frequent flier seats, some of its partners score well. Chile's Qantas Airways.

Likewise, whereas US Airways, but choose to direct the miles toward a ticket on Singapore, which makes free seats available nearly 91 percent of the time.

"If there was one perfect program, everybody would flock to it," Cohen said. "But the best program is the one that's going to best suit your needs. For that, there's no single answer."

Personal Finance - Don't Wing It with Frequent Flier Programs