US Airways 100% Bonus On Shared Miles Returns

US Airways has announced that starting tomorrow, Monday, December 2, 2013, they’ll be bringing back the single most lucrative promotion in the industry for purchasing miles. From December 2 through 6, 2013, US Airways will be offering up to a 100% bonus on shared miles. The promotion isn’t targeted, though your US Airways account has to be at least 12 days old to take advantage of this promotion.

This is very similar to the promotion they ran for the first half of October, which was essentially an opportunity to generate US Airways miles for 1.1 cents each, assuming you had a starting mileage balance.

USAirways-Share-Miles-Promotion

The only difference between this promotion and the past one is that this time around they’re offering tiered bonuses based on how many miles you share, as follows:

USAirways-Share-Miles-Promotion1

So to get the 100% bonus you have to share between 30,000 and 50,000 miles. The cost to share miles is one cent per mile, plus a 7.5% tax, plus a $30 transaction fee.

So what this means is that if you transfer 50,000 miles from one account to another you’d pay a total of $567.50, and that account would then have 100,000 miles. So basically you “generated” 50,000 miles at a cost of $567.50, which is just ~1.13 cents per mile.

50,000 miles (pre-bonus) is the most number of miles you can transfer into a single account during the promotion. That means you can transfer 1,000 miles into an account 50 times, 25,000 miles into an account twice, or 50,000 miles into an account once — the choice is yours. You can transfer as many miles as you’d like out of an account, though. Furthermore, even if you took advantage of the October promotion you’re still eligible for this one.

To put the value of this promotion into perspective, US Airways charges just 90,000 miles for business class from the US to North Asia, and you can route via Europe with a stopover there. So if you can generate miles at 1.13 cents each, that’s the equivalent of paying ~$1,000 for such a ticket. For tips on booking such a ticket, see this post.

This is absolutely as good as US Airways promotions to purchase miles get, and a rate at which I’d speculatively purchase miles even without an immediate use, despite the number of devaluations we’ve seen lately.

I’ll post again tomorrow when the deal is live.

(Tip of the hat to Deals We Like)

Comments

  1. I used to transfer 25k into a secondary account, get the 100% bonus = 50k, then transfer the 50k back into my primary account, which then became 100k, for a total “purchase” of 75k miles.

    I guess I can’t do that anymore, or not as lucratively, because the first 25k transfer will only generate a 75% bonus now?

  2. Regarding the 12 day old requirement, does that apply to the sharing account, the receiving account, or both accounts?

  3. AA guy. Just signed up for DM 2-3 weeks ago and got the US Air MC for the bonus before the merger, but 0 miles in my DM account so far. Here is my question:

    I have 0 miles in my DM account. My friend is a US Air flyer with 200K. Could he transfer 50K into my account, pay the $567.50, so I receive 50K, and then I transfer back 50K to him, pay $567.50, and I end up with 50K and he end up with 250K? Does that violate any T&C? Is the transfer instantaneous?

  4. @ Ben – that’s perfectly fine to do. I’ve done that before and know that many others will do exactly that.

  5. I figured AA wouldn’t let US discount the price of miles so aggressively so soon before the merger. Guess I was wrong!

  6. @john I feel your pain, now it’s time for payback 🙂

    Using your US Airways CC drops the price per miles since you get miles for the purchase (although only 1x) and you get a 5k discount (at least for now) on award travel redemption.

    I wonder how much value these miles will lose under AA?

  7. @john

    So you paid $37.63 for 2k duringe the last buy promo and are upset that there is a new share promo now?

    Consider that with the new share promo you could not generate just 2k since it starts at a minimum of sharing 10k, generating 5k extra at a price of $137.50, so generating your 2k would cost you $55 now!

    Even if you did go all in and shared 50k to generate an extra 50k at a price of $567.50, you would still be paying $22.70 for the 2k you needed – a saving of a whopping $14.93 😉

  8. @David, there is a $ missing before the 2k… should have been obvious from the context of my post … and I only wrote 2k to blunt the pain of what is a bigger number … essentially, I could left two 64GB iPads on the table because I miscalculated

    Still shocked that AA would allow this … And I’m going to average down by loading up on even more miles tomorrow!

  9. I’ve read in other articles that the execs have all agreed 1 US Airways dividend mile = 1 AAdvantage mile. I really hope they keep their word!

    Also, does US airways still have that 12 day requirement for new accounts? If so, then this deal is really for current US Airways members even though it’s not targeted since new members won’t be able to participate due to the 5-day window.

  10. @ Ben — You could indeed do that, transferring back and forth isn’t an issue. Transfers are usually instant, though for new accounts in the past the bonus took 1-2 days to post to avoid “fraud.”

  11. @john

    I apologize, I misread your post as “I bought 2k” instead of “I spent 2k”. I should not post this early in the morning…

    @Joey

    Yes, the 12 days requirements is still there, specified for both the sending and receiving acoount.

  12. @DaninSTL the 5000 discount is only on wholly US itineraries, not the sort of thing that would bring the most value in this situation

  13. Lucky – can I do it with the following scenarios with 3 accounts (a,b,c)

    b- share 30k to a (30k bonus)
    c- share 30k to a (30k bonus)
    a- share 30k to b (30k bonus)
    c- share 30k to b (30k bonus)

    I need 120k/each and have 2 legitimate accounts with 1 friend willing to lend her account to me.

    TIA

  14. The only problem I have with this is if a major devaluation is imminent, and they are vacuuming up the cash just prior to gutting the award chart.

    Of course, no one has done anything like that lately.

    Oh, wait…..

  15. I have never outright paid/purchased for miles like this but this time i may bite. The reason is that, the recent devaluation shows Airlines are mostly gutting the Biz/F seats and not Econ. I fly always Econ. So, for ~$568, I can save min ~$1K and maybe more. But it is still hard to shell out “hard cold cash” since I can invest this money into a lost cost Mutual fund and get comopund growth!

  16. @ Steve — The most miles including the bonus you can transfer into any account is 50K, so that wouldn’t work (since you’d be transferring 60K into individual accounts before the bonus).

  17. Hi Ben

    I have 2 random questions for ya.

    1) In your years of travels, have you met any people during your travels that have became a close friend? How do you grow the friendship if you guys are continents apart?

    2) I met an awesome person from Germany and would like to keep in touch with them. Was wondering if Germans like receiving gifts and if you had any gift suggestions 🙂

  18. @ Frugalintentionaltraveler — So far nothing suggests they’ll be offering a 100% bonus on purchased miles, unfortunately. Not really surprising since they rarely run both promotions at the same time.

  19. So, I would need to have 2 separate US Airways DM accounts in order to take advantage of this offer? I didn’t know that it was possible to have 2 different accounts under the same name? Forgive me if I sound like an idiot, but am I missing something here?

  20. @ Jason — Not a dumb question at all! Each person is only allowed to have one Dividend Miles account, though you’re allowed to share miles between accounts owned by different people. For example, you could share miles from your account to the account of a spouse/family member/friend.

    Hope that makes sense!

  21. @ Lucky – Wow, that was fast! Thanks a lot for the clarification. Also thank you so much for your awesome blog – It’s really opened up my eyes to all of the potential possibilities. Much appreciated and keep up the good work!!

  22. @ Lucky – Likewise. I still have a lot to learn, but it just takes time. I’ll keep you posted on my progress – Thanks again!

  23. To make sure I have this deal correct, I could:

    1. Transfer 50k miles to my sister at the cost of $567.50.
    2. Transfer 50k miles to my mother also at the cost of $567.50.

    Both accounts would net 100k miles. Both sister and mother could then transfer an amount back to me at the one cent per mile, plus a 7.5% tax, plus a $30 transaction fee cost.

    If done before Dec. 6, they could both transfer back 50k to me at the aforementioned cost.

    Doing so would net me, 200k miles right?

    Thanks!

  24. @ David A. — *Almost*. The most number of miles you can transfer into an account during the promotion is 50,000 miles before the bonus, for a total of 100,00 miles. It doesn’t matter how many accounts you’re transferring from, but not more than 50,000 miles can be transferred into a single account from any number of accounts and be eligible for the 100% bonus.

  25. Thanks Lucky. So, I could transfer 50k to my mom for for which she would receive 100k. She in turn could transfer 50k back to me for a total of 100k including the bonus. Essentially, we’re each netting 50k.

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