US Airways 100% Bonus Share Miles Promotion Through June 30, 2014

Historically US Airways’ single most lucrative promotion to generate miles is their 100% bonus on shared miles. That’s because in the past the cost to share a mile has been one cent per mile, plus a 7.5% federal excise tax, plus a $30 transaction fee.

US Airways has changed cost and terms of shared miles

Well, US Airways is back with another 100% bonus on shared miles… sort of. They’ve decreased the value proposition of it in two ways, though:

  • The cost to share miles has increased from 1.0 to 1.5 cents per mile
  • Instead of the receiving account getting the 100% bonus, they’re splitting it and giving the account doing the sharing a 50% bonus, and the account being shared with a 50% bonus

US Airways 100% Share Miles promotion through June 30, 2014

Through June 30, US Airways is offering a 100% bonus on shared miles with the new terms shown above.

US-Airways-Share-Miles-Promo-1

So if you max out the promotion you could share 50,000 miles at a cost of $836.25, which is 1.6725 cents per mile. Then the “giving” account would receive 25,000 bonus miles (for a net loss of 25,000 miles after the 50,000 miles are transferred out) and the receiving account would receive 25,000 bonus miles (for a net again of of 75,000 miles after the 50,000 miles are transferred in).

US-Airways-Share-Miles-Promo

US Airways 100% Share Miles promotion terms

As is usually the case with US Airways, your account has to be open at least 12 days in order to be eligible for a promotion. Furthermore, no account can receive more than 50,000 bonus miles during the share miles promotion. So if you transfer more than 100,000 miles (pre-bonus) into an account, you won’t receive a bonus for those additional transferred miles.

Should you share US Airways miles?

There’s no doubt this deal is substantially less lucrative than the 100% bonuses on shared miles that we’ve seen in the past. Not only has the cost to share miles gone up by 50%, but they’re basically “splitting” the bonus, which minimizes the number of bonus miles in any one account.

Meanwhile, when US Airways offers a 100% bonus on purchased miles, the cost there is 1.88 cents per mile. So ultimately the cost here is still lower, and if you can transfer the miles in a way that works (keeping in mind that some bonus miles are going into the original account), then this could still make sense.

~1.67 cents per mile is still a very good rate at which to purchase US Airways miles with a specific use in mind, though probably not a rate at which I’d speculatively pick up US Airways miles.

Cathay-Pacific-First-Class-10
Redeem US Airways miles for Cathay Pacific first class

What do you think of the new share miles promotion rates and terms? Do you plan on “buying” US Airways miles with this deal?

(Tip of the hat to Gary)

Comments

  1. I tried to book JAL yesterday and USDM agent said they can’t see JAL seats, so not bookable!
    Still under negotiations I was told.

  2. Can you clarify the max bonus amount?
    Are you saying that any given account can only receive a max amount of 75,000 (50k +25k bonus) or 150,000 (two maxed out transfers resulting in 50k bonus)?

  3. @ David — Whoops, reading it again it does seem like the maximum is 50,000 bonus miles. So you can transfer 100,000 miles into an account before the bonus, it would appear.

  4. Ben- Why does US Air charge a 7.5% gov’t tax on sharing miles. Delta does not charge a gov’t tax on shared miles. My understanding is the gov’t does not collect a tax on shared miles. This would be a great class action lawsuit.

  5. I actually agree. If anything, the “newly generated” (bonus) miles could be construed as a purchase, but in that case only the new miles should be subject to tax…

  6. For those of us outside the US, these kinds of deals are the only way for us to get miles (credit card offers are extremely limited).

    Because of that it’s stocking up time (again).

  7. @ TomS — By my reading of the rules that should be fine since there are no more than 50,000 bonus miles per account, but I could be reading it wrong.

  8. I am wary of offers from US AAirways ever since they made “improvements” to the AAdvantage program with no advance warning.

    What’s to say it couldn’t happen again after I have spent the $$? I agree with you, not worth speculating on. If I had an immediate need, sure, but not to ‘bank’ for future use.

  9. At 1.1 cents, this was a no-brainer. At the current price – probably not. Guess the sweet life is over for those that liked buying Lifemiles and USDM, lol

Leave a Reply

Your email address will not be published. Required fields are marked *