When it comes to managing your travel expenses, airfare credit cards offer a great way to save money, earn rewards, and even access additional travel perks. Having used them myself, I’ve found that these cards can be incredibly beneficial if you know how to choose and use them wisely. In this guide, I’ll walk you through everything you need to know about airfare credit cards, from how they work to how to make the most of their benefits.
Table of Contents
What Are Airfare Credit Cards?
Airfare credit cards are a type of travel rewards card that allows you to earn points, miles, or cashback on your purchases, which can then be redeemed for flights or other travel-related expenses. These cards typically offer perks like bonus miles on airfare purchases, priority boarding, free checked bags, and access to airport lounges. Some even allow you to transfer points to airline partners for more flexible redemption options.
For example, let’s say you use an airfare credit card to book a flight with a certain airline. Depending on the card, you could earn miles or points for every dollar spent. If you make a purchase at a supermarket or dining out, you might earn additional bonus miles. Over time, these miles accumulate and can be used for free flights or seat upgrades.
Why Choose an Airfare Credit Card?
There are several reasons why you might want to consider using an airfare credit card. If you travel frequently, an airfare credit card can help offset the cost of your flights. Even if you don’t travel often, these cards often offer additional rewards for everyday purchases, which can add up to valuable travel benefits.
Here are some reasons to choose an airfare credit card:
- Earn Travel Rewards: As you make purchases, you earn miles or points that can be redeemed for flights.
- Sign-Up Bonuses: Many cards offer large sign-up bonuses, sometimes enough for a free flight if you meet the spending requirements within the first few months.
- Travel Perks: Depending on the card, you can enjoy benefits like free checked bags, priority boarding, or lounge access.
- Flight Discounts: Some cards offer discounts on flights when booked through specific airlines or travel portals.
Different Types of Airfare Credit Cards
Not all airfare credit cards are the same. They come in different categories and offer various benefits depending on your travel habits and preferences. Here’s an overview of the main types of airfare credit cards:
- Co-Branded Airline Credit Cards These cards are issued in partnership with a specific airline and provide rewards that can only be used with that airline. The benefit is that you’ll earn more miles on purchases made with the airline, such as booking flights or purchasing in-flight services.Example: The American Airlines AAdvantage MileUp Card, which offers 2 miles for every dollar spent on American Airlines purchases, is a great choice for frequent American Airlines travelers.
- General Travel Credit Cards These cards are not tied to a single airline but allow you to earn points that can be transferred to various airline partners. They offer more flexibility in how you redeem rewards and may provide higher point values on purchases that are not related to airfare.Example: The Chase Sapphire Preferred Card is a general travel card that allows you to transfer points to over 10 airline partners, offering a broader range of options.
- Premium Travel Credit Cards These cards come with higher annual fees but offer more premium benefits, such as access to airport lounges, higher earning rates on travel-related purchases, and better protection for trip cancellations or delays.Example: The Platinum Card from American Express offers 5 points per dollar on flights booked directly with airlines or through American Express Travel.
- Cash Back Travel Cards Some cards allow you to earn cash back on your purchases, which can be used to offset travel expenses, including airfare. These cards might not offer the same level of travel-specific benefits but can still be a good option for those looking for flexibility.Example: The Citi Double Cash Card gives 2% cash back on all purchases (1% when you buy, 1% when you pay), which can be applied toward travel expenses, including airfare.
How Do Airfare Credit Cards Work?
The way airfare credit cards work is straightforward. You earn points or miles for every purchase you make with the card. These rewards are typically based on the amount spent, with bonus points offered for travel-related expenses like flights, hotels, and dining. The rewards you earn can be redeemed for flights, seat upgrades, or other travel-related benefits.
Here’s an example of how you can use an airfare credit card:
- Step 1: Apply for an airfare credit card. Many cards offer sign-up bonuses, like 50,000 points after spending $3,000 in the first three months.
- Step 2: Use the card to make purchases. For example, let’s say you spend $500 on groceries, $200 on dining, and $1,000 on a flight. Depending on the card, you might earn 1 to 3 points per dollar spent, and additional bonus points for travel purchases.
- Step 3: Accumulate your points. If you have a card that earns 2 points per dollar on travel, then on a $1,000 flight purchase, you would earn 2,000 points.
- Step 4: Redeem your points for travel rewards. The points you accumulate can be redeemed for flights, seat upgrades, or other perks, such as access to lounges.
Airfare Credit Card Comparison Table
Let’s take a look at a comparison table of popular airfare credit cards to see how their benefits stack up:
| Card Name | Annual Fee | Sign-Up Bonus | Rewards Rate | Additional Perks |
|---|---|---|---|---|
| American Airlines AAdvantage MileUp Card | $0 | 10,000 miles after spending $500 in the first 3 months | 2x miles on American Airlines purchases, 1x miles on other purchases | Free checked bag on American Airlines flights |
| Chase Sapphire Preferred Card | $95 | 60,000 points after spending $4,000 in the first 3 months | 2x points on travel and dining, 1x points on other purchases | 25% more value when booking through Chase Ultimate Rewards |
| The Platinum Card from American Express | $695 | 100,000 points after spending $6,000 in the first 6 months | 5x points on flights booked directly with airlines, 1x on other purchases | Access to airport lounges, hotel elite status |
| Citi Premier Card | $95 | 60,000 points after spending $4,000 in the first 3 months | 3x points on travel, including airfare, 2x points on dining | No foreign transaction fees, travel protection |
Calculating the Value of Rewards
Let’s break down the value of rewards for a couple of examples. Imagine you’re using an airfare credit card that offers 2x points on flights.
Example 1: American Airlines AAdvantage MileUp Card
If you spend $1,000 on American Airlines flights, you would earn 2,000 miles (2 miles per dollar spent). These miles can then be redeemed for a future flight. Depending on the current mileage redemption rates, 10,000 miles could equal a one-way flight from Dallas to New York.
- Total points earned: 2,000 miles
- Flight cost (round trip): 20,000 miles for a flight from Dallas to New York
With just one flight, you’re already a tenth of the way to earning a free ticket.
Example 2: Chase Sapphire Preferred Card
With 2x points on travel, you’d earn 2,000 points for every $1,000 you spend on airfare. If you redeem these points through Chase Ultimate Rewards, they are worth 25% more.
- Total points earned: 2,000 points
- Redemption value with 25% bonus: 2,500 points
These points can be transferred to a variety of airlines, potentially giving you greater flexibility and value when booking flights.
Choosing the Right Airfare Credit Card
To choose the right airfare credit card for your needs, there are a few factors to consider:
- Your Travel Frequency: If you fly often with a particular airline, a co-branded card may offer the best rewards. For example, if you’re a frequent flyer with Delta, their co-branded SkyMiles card could be a great choice.
- Sign-Up Bonus: Look at the sign-up bonus and make sure it aligns with your spending ability. Some cards offer bonuses that are enough for a free flight if you meet the spending requirements.
- Annual Fee: Weigh the annual fee against the benefits you’ll receive. If you travel often and can take advantage of premium perks, a higher annual fee may be worth it.
- Reward Redemption Options: If you prefer flexibility, a general travel card like the Chase Sapphire Preferred may be a better fit. These cards allow you to transfer points to various airline partners, giving you more options for redeeming your rewards.
Conclusion
Airfare credit cards can be a great tool for earning rewards on your travel purchases and getting additional travel perks. By carefully choosing the right card and using it wisely, you can maximize your rewards and make your travel experience more enjoyable and affordable. Whether you choose a co-branded airline card, a general travel card, or a premium card, the key is to find one that matches your travel habits and offers the benefits you’ll actually use. With the right approach, you can travel smarter and get more out of your airfare credit card.
