Are Airline Credit Cards Still Worth It? A Comprehensive Guide

Airline credit cards have undergone significant changes over the years, evolving alongside frequent flyer programs. Once simple tools offering straightforward bonuses for free flights, these cards now present a myriad of options, including transferable rewards and fixed-value points programs. With the growing number of airline credit cards available, consumers may find it challenging to assess their true value. Additionally, the benefits, bonuses, and fees associated with these cards are frequently updated, raising the question: Are airline credit cards still worth it, particularly the premium options with hefty annual fees?

The answer is nuanced, as there are still excellent airline credit cards tailored to various types of travelers. Before deciding whether an airline card is right for you, consider the following factors.

Evaluating Welcome Offers

When assessing an airline credit card, the welcome offer is a crucial factor. Look for advantageous bonuses and carefully review the spending requirements to determine if they are achievable for you. For instance, the United Quest℠ Card currently offers 100,000 bonus miles and 3,000 Premier qualifying points (PQPs) after spending $4,000 in the first three months. Such offers can be enticing, especially for those seeking a mid-tier United card.

It’s essential to research and compare welcome offers, as they can change frequently. A compelling welcome offer can significantly enhance the card’s value, so don’t overlook it.

Understanding Annual Fees

Annual fees vary widely among airline credit cards. While some cards boast no annual fee, these are exceptions rather than the rule. Cards with no fees can be suitable for occasional travelers looking to accumulate miles without a significant financial commitment. On the other hand, premium cards often charge annual fees exceeding $600. These fees can be justified for frequent flyers who can take advantage of perks like lounge access and elite-qualifying miles based on spending.

Most popular airline credit cards fall within the $100 to $150 range annually. Examples include the AAdvantage® Aviator® Red World Elite Mastercard® ($99 annual fee), JetBlue Plus Card ($99 annual fee), Southwest Rapid Rewards® Premier Credit Card ($99 annual fee), and the United℠ Explorer Card, which has a $0 introductory annual fee for the first year, then $150.

Some cards also provide anniversary bonuses that can help mitigate the impact of their annual fees. When your renewal date approaches, consider whether the card’s benefits justify the cost for another year. If you’re contemplating canceling or downgrading, it may be worth inquiring about retention offers.

Earning Potential and Spending Habits

Traditionally, airline credit cards earned double miles on purchases made with their affiliated airline. However, to remain competitive with non-airline travel rewards cards, many now offer multiple miles per dollar spent at various merchants, including restaurants and grocery stores. When evaluating a new airline credit card or reviewing an existing one, examine the bonus miles categories to see if they align with your spending habits. For example, if you primarily spend on groceries, a card that earns 2 miles per dollar on dining may not be the best fit.

Top earners in this category include the United Explorer Card, which earns 2 miles per dollar on hotels (when booked directly) and dining. The Citi® / AAdvantage® Platinum Select® World Elite Mastercard® earns 2 miles per dollar at gas stations and restaurants, while the JetBlue Plus Card offers 2 points per dollar at restaurants and eligible grocery stores.

Valuable Travel Benefits

Airline credit cards can provide various travel benefits, including waived fees and money-saving perks. These may include free checked bags, priority boarding, and discounts on inflight purchases like food and Wi-Fi. Even modest savings can accumulate over time, making these benefits worthwhile depending on how often you utilize them.

For many travelers, achieving airline elite status is a priority, and using a cobranded airline card can help bridge the gap if you’re close to qualifying. However, only a select few airline credit cards offer elite-boosting opportunities, typically with high annual fees. If you’re a frequent flyer aiming for the next status tier, carrying an airline card may be beneficial.

For instance, the United Explorer Card earns 1 PQP for every $20 spent on purchases made with the card, up to 1,000 PQP in a calendar year. In contrast, the higher annual fee United Club℠ Card earns 1 PQP for every $15 spent, up to 28,000 PQP in a calendar year, plus an additional 1,500 bonus PQP each program year.

Companion Ticket Benefits

Airline credit cards can also offer significant savings through companion ticket benefits, which vary among airlines and cards. For example, the Alaska Airlines Visa® Business card provides an annual companion fare starting at $122 (including taxes and fees) for economy class, available each account anniversary after spending $6,000 the prior year. If you frequently travel with a partner or family member, a card with companion benefits could lead to substantial savings.

Long-Term Value of Frequent Flyer Programs

It’s essential to evaluate the long-term value of an airline’s frequent flyer program. Many programs, including Delta SkyMiles, United MileagePlus, and Alaska Mileage Plan, have experienced significant devaluations recently. Some airlines have even eliminated their award charts, opting for dynamically priced tickets. Before committing to a new frequent flyer program and applying for a credit card, conduct thorough research on how the program has evolved to ensure the miles you earn will meet your travel goals.

Understanding Card Issuer Restrictions

Major credit card issuers have implemented restrictions to prevent excessive card churning, which may affect your ability to open new cards and earn welcome bonuses. For example, Chase’s 5/24 rule can impact approvals for popular cards like the United Explorer Card and Southwest Rapid Rewards Premier. Generally, if you’ve opened five or more personal credit cards from any bank in the past 24 months, Chase may deny your application for a new card.

American Express has also tightened eligibility rules, particularly for popular cards like those in the Delta lineup, limiting bonus eligibility to once per lifetime for each product. Meanwhile, Citi has specific limitations for its AAdvantage cards, so understanding these rules is crucial to avoid being denied or ineligible for bonuses.

Transferable Rewards as an Alternative

If you’re looking to accumulate frequent flyer miles without being tied to specific travel benefits, consider applying for a card that earns transferable rewards. Programs like American Express Membership Rewards, Bilt Rewards, Capital One miles, Chase Ultimate Rewards, Citi ThankYou Rewards, and Marriott Bonvoy allow you to transfer points to various airline partners, offering flexibility and protection against sudden award chart devaluations. Moreover, credit cards associated with these programs often provide bonus-earning opportunities across multiple categories, making them superior earners compared to many airline credit cards.

Making the Decision

Ultimately, whether to carry an airline credit card depends on several key factors. First, evaluate if the welcome offer provides compelling value. Next, consider whether the ongoing benefits, such as travel perks and discounts, outweigh the annual fee. Lastly, assess whether a rewards card that earns transferable rewards aligns better with your spending habits and travel preferences.

At The Points Guy, we believe that credit cards have the potential to transform your financial life, enabling you to leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That’s why we provide a wealth of editorial content and card comparisons—to help you find the right card to turn your travel dreams into reality.

When applying for a new credit card through our site, please note that we may receive compensation from our partners, which can influence how or where these products are presented. While we strive to cover a broad range of available credit cards, our editorial team maintains independence in our analysis. For more information, please review our advertising policy and product review methodology.