Rising airfares reduce value of airline miles in summer travel

Travelers using credit cards that earn airline miles and travel points will likely find their accumulated balances less valuable this summer, as rising jet fuel costs and seasonal demand drive up the cost of flights and related fees. According to travel experts, consumers may need to spend additional cash, alter their destination, or accept less convenient travel times to maximize their loyalty rewards.

Data from the Labor Department shows airfares in April were 21 percent higher than a year earlier. This increase is attributed to a combination of elevated jet fuel prices and typical summer demand. The pricing structure for redeeming points has also evolved. While airlines once used fixed charts, most now employ dynamic pricing, where award ticket costs in points fluctuate with overall demand, mirroring cash fares. Consequently, higher airfares generally require more miles or points for redemption.

Industry observers note that challenges with reward redemption are not new. Concerns have been raised previously by consumers and officials regarding airlines increasing point requirements or limiting seat availability for rewards. Brian Kelly, a travel rewards expert, stated that...