(EXPIRED) Buy miles cheaply: AA miles from 1.72c each

Sorry, this deal is no longer available.  Do you want to be alerted about new deals as they’re published?  Click here to subscribe to Frequent Miler's Quick Deals.

American Airlines is offering a sale on purchased miles: through June 30th, you can buy miles for as low as 1.72 cents each — though be aware that it takes a large purchase to snag that low rate. That’s higher than our Reasonable Redemption Value for American Airlines miles, though it is certainly possible to redeem miles for greater value with strategic redemption.

The Deal

Key Terms

  • Discount does not apply to taxes or $30 transaction fee
  • Limit of 150,000 purchased miles per year (bonus miles do not count towards this limit)
  • Bonus miles are earned separately with each purchase (if you make separate purchases that cumulatively add up to 150,000 miles, you will not get 100K bonus — your bonuses will be based on the amounts of each separate purchase.
  • See promotion page for full terms

Quick Thoughts

Most readers probably prefer to generate miles than to buy them. However, in some instances it can make sense to buy miles if you have a good use in the near future. For example, business class from the US to Japan would cost 60,000 AA miles one-way — a cost of about $1,032 using miles purchased at 1.72 cents each. A first class ticket is 80K, which would be $1376. While neither number is small, both are significantly less than the cash prices to fly to Japan in business or first on JAL or Cathay Pacific, two of the partners you could fly.

In Greg’s post about earning miles in a post-SPG card world (See: Spending for miles. Best SPG alternatives), he noted that cash back cards can be a good alternative for earning certain kinds of miles. For example, let’s say you have a Bank of America Premium Rewards card with Platinum Honors and you therefore earn 2.65% cash back on purchases. Let’s further say that you use that card with the intent to buy AA miles. If you earn 2.65 cents back on every dollar and spend 1.72 cents per mile, you’re effectively earning 1.54 AA miles per dollar spent on the card. Of course, that assumes that you already have enough earned cash back to buy at the top end of the bonus chart, which rings in pretty high at $4,311.19 for 250,000 total miles (and it also assumes that you’d rather buy miles than do anything else with your cash).

That beats the earn rate for AA miles on airline credit cards, though it is again a huge investment in a currency that can devalue quickly (though I’d personally expect the award chart to stay more or less the same for a while).

This sale certainly isn’t for everyone, but if you were eyeing the purchase of AA miles, this is a pretty good rate for buying — I just wouldn’t do it speculatively.

H/T: One Mile at a Time

About Nick Reyes

Nick Reyes is a (fairly) regular guy with an animalistic passion for maximizing the value of miles and money to travel the world in comfort and style. There is little in life that he loves more than finding a fantastic deal and helping you shop smarter & harder to achieve your travel dreams.

More articles by Nick Reyes »

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
[每日文摘] Amex 確認開始實施新的開卡禮限制 (6/13/18) | 華特的信用卡客服中心 Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of
trackback

[…] ➤ AA 目前正在賣里程,最便宜的價格是 1.72 cent per mile, 截止日期為 6/30/2018. 我過去曾經花了 40萬左右的 AA 換了六張 SFO-HND 之間的日航頭等艙機票,如果用 1.72 cpm 的價格來算,一人單程只要不到 $1,200!! 簡直太超值(目前已稍微漲價)。 AA 的亮點在於日航和國泰的跨洋商務頭等艙,有興趣的人可以考慮購買。 […]