Why is United Changing Course?

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Why is United Changing Course?

Recently, major airlines in the U.S. have been reaping significant profits from their loyalty programs, especially through co-branded credit card services. Even though airlines like United, Delta, and American Airlines have been pocketing billions each year from these programs, they continually seek ways to optimize revenue from credit cards.

I’ve noticed that airlines often make decisions centered around increasing the number of credit cards customers sign up for. Have you seen that free Wi-Fi on flights? That's a tactic to encourage customers to join loyalty programs, allowing airlines to reach and market to them more effectively.

Notable Changes to United MileagePlus

A few weeks ago, United announced significant changes to its MileagePlus program, focusing on incentivizing customers to choose United’s credit cards. These changes benefit those who hold co-branded credit cards while disadvantaging those who do not—it's as simple as that.

Starting today, I’ll summarize the details of these changes. Andrew Nocella, United's Chief Commercial Officer, stated, “The best way to fly with United is to be a MileagePlus member, and the best way to maximize value from the program is to own one of our credit or debit cards.”

Changes in Mileage Calculation

Beginning April 2, 2026, United will alter the way it calculates miles for purchased tickets. Although miles will still be based on ticket prices, the calculation method will change. Previously, the number of miles a MileagePlus member earned was based on their elite status, regardless of whether they held a United credit card.

Now, primary members of the United MileagePlus credit card will earn more miles when purchasing regular tickets. They will receive additional miles when paying for flights with an eligible credit card. For example, a Premier 1K member with a co-branded credit card will earn 12 miles for every dollar spent when using any other card, but if they use the United Club Card, they will earn 17 miles (thanks to an additional 5 miles from that card).

Restrictions on Earning Miles with Basic Economy Tickets

United is also implementing stricter limitations on earning miles from basic economy tickets. Under the new system, MileagePlus members without elite status must hold a co-branded credit card to earn miles when flying on basic economy fares. This means if you don’t have a card and aren’t an elite member, you won’t earn any miles from basic economy tickets.

Discounts for Credit Card Members

With these changes, co-branded credit card members will receive at least a 10% discount on all award flights they book. Those with Premier status and a co-branded credit card will enjoy a discount of at least 15%. Members will easily see their savings displayed on the United app and website.

More Saver Award Seats

United will also be adding more Saver award seats in the Polaris business class for credit card members. Currently, about one-third of flights with these award seats have special priority for credit card members and Premier members. There will be even more seats available for credit card members, and the 10-15% discount will apply to them.

My Thoughts on These Changes

I'm not too surprised by United's shift, as it clearly reflects a broader trend in the airline industry. In the past, airlines primarily focused on motivating members to sign up for co-branded credit cards.

With these changes, United seems to be “penalizing” those who do not hold a co-branded credit card by minimizing their benefits. While I’m not a fan of this trend, I think it's a smart move. Those who are truly loyal to the brand are likely to sign up for the credit card, and this will undoubtedly motivate many to apply for a United card immediately.

Conclusion

Overall, United has made significant changes to its MileagePlus program, making it an integral aspect of credit card use. It’s clear that the current trend is leaning toward incentivizing credit card usage, especially in recent years.

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