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.
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 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.
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)