The Extra Mile, Sept. 10: Q&A with Flying Blue’s New Boss, Aeroplan Card Changes & More

🇫🇷 Inside Flying Blue’s Painful Changes & What It Means for the Future

Tuesday was doomsday for one of the best airline mileage programs on the planet. It was a turning point for Air France/KLM Flying Blue – and not in a good way.

The new, three-tiered award pricing system that went live this week ushered in a “light” award ticket option with no changes or cancellations, fewer (if any) bags, and no lounge access in business class. Want those “perks”? You’ll have to pay another 5,000 to 15,000 miles each way – bringing a business class redemption overseas from 60,000 miles to 75,000 miles.

Any award rate increase like that stings. But the problems are much bigger than our beloved Flying Blue.

From Emirates to Cathay Pacific to Etihad and beyond, marquee foreign airlines are clearly reconsidering just how much they want our points here in America. And all the while, airlines across the globe are getting much stingier with award availability – releasing far fewer flights that we can actually book with our miles.

It all begs a question we’ve repeatedly raised on our podcast: Is the points & miles ecosystem, as we know it, ending?

I put some version of that question to Tiffany Funk, who recently took over running Flying Blue, as they unveiled these changes. She had some very interesting insights into what’s driving this trend, why Air France/KLM’s mileage program differs from other carriers’, and what’s next.

Here are some snippets from our conversation.

Why are you doing this to us?

OK, so this isn’t exactly how I asked it. But that was the gist, and Funk pinpointed an underlying problem driving much of the painful change we’ve seen in the points-and-miles landscape. Really, it’s the heart of the reason why many foreign airline programs keep changing for the worse.

“Our most engaged travelers are European-based and cannot earn miles at the same rate as American travelers,” she said. “We’ve been really aggressive at keeping our entry-level pricing at a fair floor, achievable for Europeans.”

Airline alliances and transferable credit card programs have turned the points world global … but it’s on an unfair playing field: We Americans can earn far, far, far more points than anyone else on the planet because, unlike virtually every other country on the globe, credit card swipe fees aren’t capped here. That funds more perks and, yes, bigger bonuses.

So a flat award rate increase would unduly punish European flyers. Instead, Funk’s most loyal flyers in the Netherlands and France can keep booking those pesky “light” fares at the same price point – their Flying Blue elite status allows them to escape most (if not all) of the restrictions.

It’s an award rate hike for us Americans and (mostly) status quo for others … at least for now.

“I can’t promise that we won’t change” award rates going forward, Funk said.

Gulp.

There’s been a ton of negative change in the U.S. points landscape in just the last year. So does this signal Flying Blue is reconsidering the U.S. points market, too?

Before taking the reins of one of Europe’s biggest mileage programs, Funk helped set up and run the award search tool point.me as well as the popular site One Mile at a Time. She is what we’d call a bona fide “sicko” and probably knows the world of award travel better than all of us here at TT HQ combined.

She gave me an emphatic “no.”

“I don’t believe that you would hire an American to run your program if that was your goal,” Funk said.

Fair point!

Funk said Air France/KLM see the travel landscape differently than other carriers might. That’s due in part to some of the intricacies of how Flying Blue operates financially – a lengthy topic for another newsletter – as well as the underlying DNA of the airlines.

“Our planes fly both directions. KLM invented the idea of a hub with Schiphol (Amsterdam’s airport),” she said. “Our job is to help sell seats and fill planes.”

OK, but the trends across the industry are undeniable – and undeniably negative, at least for us. What gives?

Funk said many airlines are “struggling to find that balance” between rewarding loyal customers and collecting important revenue from points redemptions without giving too much away – particularly at a time when premium cabin seats are selling more than ever.

So while she disagreed that Air France/KLM were “giving up” on the U.S. points market, she said:

“That is absolutely right for some programs. The relationship that they have with their carriers, it’s very complex.”

Again, part of the problem (for airlines, anyway) is that Americans can earn more points than the French, Dutch, British, or even Canadians. But Funk said it goes deeper, pointing to research that rewards credit cards are more popular than ever.

“The landscape is definitely different than four to five years ago. We have a real shift in how Americans earn points,” she said.

Plus, years of inflation mean every purchase is generating even more points: “Every single transaction is now more expensive.”

And then there’s the “premium” travel boom, which means that airlines are now selling pricey seats that previously might have been filled by award ticket-wielding travelers.

Is part of the problem here that points have gone, for lack of a better word, mainstream?

Let me explain.

When I started working here almost eight years ago, we were one of a handful of sites obsessing about earning and redeeming miles. The points and miles obsession was largely playing out in forums and small online communities.

Fast forward to present day, and there’s an entire economy of social media influencers talking about credit cards and fancy business class redemptions every hour of every day. Plus, there’s been an explosion of tools designed to help travelers maximize their points.

Funk told me, basically, that I’m in an echo chamber: Us sickos are still very much in the minority. Calling it “mainstream” is a stretch, she said.

“I don’t know that it’s true, or if it’s just getting more amplified,” Funk said. “It is a fraction of points that are transferred to partners.”

“We’re talking about a very very small slice of the pie.”

That’s good perspective. But it’s also undeniable that our particular slice of the pie has grown a lot in just the last few years.

– Kyle Potter, executive editor

🎙️ New Pod Alert: The Award Deals Too Good to Last

📣 No Gatekeeping: The 10 Best Redemptions in Points & Miles

⏲️ Some deals are just too good to last. That’s why the guys are shining the light on some of the best deals in all of points and miles – the ones you should book ASAP before they disappear. Plus, the guys unpack Alaska’s family-friendly update and wonder aloud: Should there be a smoking section inside Southwest’s upcoming lounges?

Watch it now on YouTube, Apple Podcasts, Spotify, or wherever you get your podcasts!

🤝 Deal of the Day: Massive Sale to Europe under $595 RT!

Heat scale (out of 3): 🔥🔥🔥

Why we love it: Finally, a huge sale on flights to Europe!

Mostly flying American Airlines and partners with best availability this fall and next winter. Deal includes up to 14 different European cities starting at just $366 roundtrip!

Sign up now to get all the details on this deal & don’t miss the next flight deal alert.

Already a member? Log in to see all your deals. (Not seeing it? Remove your airport filters to see every deal.)

– Gunnar Olson, Thrifty Traveler Premium deal analyst

🍔 Chase Ups the Sapphire Reserve DoorDash Dining Credit

Starting Oct. 1, Chase is bumping the Sapphire Reserve’s $5 monthly DoorDash restaurant credit up to $15 … and for the first time, you can spend it on anything on DoorDash, not just food.

Right now, Reserve cardholders enrolled in DashPass (DoorDash’s $9.99-a-month membership that waives delivery fees, included free with the card) get three separate DoorDash credits every month – a $5 restaurant credit and two $10 credits for non-restaurant orders like groceries.

Chase confirmed in a statement to Thrifty Traveler the change at the start of October:

• The $5 restaurant credit is jumping to $15 – and it’ll work on any DoorDash order, not just food
• The two $10 non-restaurant credits stay exactly the same, still requiring separate qualifying orders
• All of these credits are still use-them-or-lose-them each month. Nothing rolls over

Add it up, and Reserve cardholders go from getting up to $396 a year in total DoorDash value to $516 a year once this kicks in.

I carry the Reserve myself, and I’ll be honest: that $5 credit rarely felt worth the hassle once DoorDash’s fees ate into it. $15 dollars that works on anything actually changes the math.

It’s also the latest sign that Chase has spent the past year quietly fixing the parts of this card that annoyed people most: loosening up The Edit’s rigid hotel credit windows, extending the Apple credit to Apple One subscribers, and now this.

Read our full story here

– Nick Serati, Thrifty Traveler co-founder

🇨🇦 Chase Overhauls the Aeroplan Card With Higher Fee, New Perks

Chase and Air Canada just announced a major refresh of the Chase Aeroplan® Card, and it’s a bit of a mixed bag: Better earning, automatic elite status, and a much bigger welcome bonus – but a steep jump in the annual fee and a cut to two of its best bonus categories.

Here’s everything that’s changing, starting today.

A Much Bigger Bonus Offer

Cardholders can now earn up to 115,000 bonus Aeroplan points with a new, two-tier bonus offer:

• 75,000 points after spending $4,000 in the first 3 months
• Plus another 40,000 points after spending $20,000 in the first 12 months

That’s a jump from the current offer of 60,000 points after $3,000 in three months – though it now requires meaningfully more spend to unlock the full bonus. But even if you only clear the first spending threshold, that 75,000-point bonus alone is worth well over $900 in travel, and considerably more with a strong Aeroplan redemption.

The Annual Fee is Jumping to $195

The card’s annual fee is more than doubling from $95 to $195. That’s a tough pill to swallow, but Chase backed it up with enough added value that it should still pencil out for most cardholders … at least for the first few years.

Instant Aeroplan 25K Status – No Spending Required

Every new and existing cardholder now gets automatic Aeroplan 25K status, with no minimum spending required. Previously, new cardholders got 25K Status for the year they opened the card, as well as the following year, but had to spend $15,000 annually to keep it after that.

Aeroplan 25K status gets you:

• Priority Check-In and Priority Boarding (Zone 2)
• 5 eUpgrade Credits per year, with more available through milestone benefits
• Star Alliance Silver status – mildly useful for regular United flyers

More Rewards on Travel & Air Canada Purchases

The new earning structure:

• 5x total Aeroplan points on Air Canada purchases (3x from the card, plus 2x directly from Air Canada as a 25K member)
• 3x points on travel purchases generally – a brand-new category
• 2x points on dining (including takeout and eligible delivery), grocery stores, and now gas stations
• 1x point on everything else

That 3x travel category is new and a nice add if you book a lot of travel outside Air Canada. But the dining and grocery earning is actually a downgrade – those categories previously earned 3x, and they’re dropping to 2x. Gas stations are a brand-new 2x category, which helps offset some of that loss, but not for everyone.

Up to $100 in Air Canada Statement Credits

Cardholders now get up to $100 in Air Canada statement credits annually, split into two $50 credits delivered semi-annually.

15% Off Air Canada Award Redemptions

Starting now, you can save 15% on eligible Air Canada flight redemptions booked with Aeroplan points (but not partner awards). This puts the Aeroplan card in the same territory as Delta’s TakeOff 15 benefit and United’s new cardholder discount – a growing trend among airline cards to build a points discount directly into the card’s value proposition.

What’s Staying the Same

A few of the card’s best perks are untouched:

• 4th Night Free on award hotel stays booked with 3-plus consecutive nights of Aeroplan points
• Up to $120 credit toward Global Entry, TSA PreCheck®, or NEXUS every four years
• Pay Yourself Back, which lets you redeem Aeroplan points at 1.25 cents each for a statement credit on recent travel, dining, grocery, and gas purchases – not just Air Canada spend. You can redeem up to 200,000 points a year this way, good for up to $2,500 in statement credits.

Are These Changes Good or Bad?

I think they’re a win … at least for most travelers. A $100 fee increase always stings, but automatic 25K status alone is a worthwhile benefit, and the 15% Air Canada discount, new travel category, and Air Canada credits could stack up quickly.

The drop from 3x to 2x on dining and groceries is a genuine loss, but the gas category and broader travel earning should soften the blow for most people. Add in a bonus worth $900–plus (even at the first tier), and this refresh should be a net positive for most travelers.

– Jackson Newman, senior editor

👮 TSA Weighs Allowing Full Water Bottles Through Security

It’s one of the funniest rituals in travel: You get to the TSA screening checkpoint, you take off your backpack, and realize you’ve got 40 ounces of water in your bottle. There’s only one thing to do … chug the whole damn thing …

It’s a situation I refuse to prepare for and therefore have to endure every time I fly. But a new proposal from the Trump Administration might change that.

According to a report from CBS News, the TSA is considering allowing PreCheck passengers to bring full water bottles through security “in the coming months” at “a select number of airports.”

So, this is hardly a slam dunk, as the details of this rule proposal still need to be parsed, but with new baggage scanner technology, the TSA said some of its machines can distinguish water from other liquids.

If this technology is rolled out across the country, the days of the “TSA Line Chug” may be over. Perhaps I’m being too nostalgic, or I’m just incredibly hydrated, but I might kind of miss it?

Check out our full breakdown of the news!

– Gunnar Olson, flight deal analyst, travel reporter, and host of the Thrifty Traveler Podcast

✈️ Other Travel Tidbits

• 🏨 Delta and Hyatt just announced a new long-term loyalty partnership – hours after AA confirmed its own Hyatt partnership is winding down. Details are thin so far, but elites in both programs will get a new “Dual Earn” benefit once it launches in the coming months.
• 🎉 World of Hyatt is celebrating Thompson Hotels’ 25th anniversary with 2X bonus points (capped at 30,000), through Nov. 10. You’ll need to register and book through the mobile app to qualify, and stays must be completed during the promo window. (Hyatt)
• 🇪🇸 Iberia’s new Emerald Lounge Sorolla officially opened Thursday at Madrid’s airport, exclusively for OneWorld Emerald members. The 8,600-square-foot space fits 128 guests with a cocktail bar, barista coffee, and private rest areas. (One Mile at a Time)