Air miles credit cards are travel-centric cards offering value-back in the form of air miles, which can be utilized to avail free flight tickets or class upgrades. Most air miles credit cards are co-branded with popular airlines but some credit cards also come with ‘miles’ as their reward currency, which can be redeemed across multiple airline and hotel partners. Besides these, some premium rewards credit cards also allow reward point conversion to air miles, offering good value to frequent travellers. Generally, air miles credit cards fall in the mid-range or premium segment, thus charging comparatively high annual fee and requiring more stringent eligibility conditions.
How do air miles credit cards work?
Earning
With an air miles credit card, you earn air miles every time you make purchases using your card. Some cards may also offer reward points that can be transferred to popular airlines’ air miles. Co-branded airline cards directly offer benefits in the associated airlines’ miles currency. For example, Indigo HDFC Credit Cards offer 6E Reward Points instead of general air miles.
The earning rate varies from card to card and it may also vary basis the type of purchase. For example, on travel-focused cards, spending on flights, hotels, or other travel-related expenses might earn more miles than retail shopping. Most cards also offer substantial bonus miles under their activation and milestone program.
Redemption
An important point to note here is that the air miles you earn are not equivalent to actual travel miles. Different airlines and their frequent flyer programs have varying redemption rates. Some airlines offer more value per mile than others, often depending on the routes, demand, and availability. Depending on your journey, you could set off the entire fare for a shorter journey or only get a discounted fare.
| Air India Flying Returns- Points Required | |||
| Journey | Economy | Business | First |
| Delhi-Bengaluru | 7500 – 12000 | 31000 | – |
| Delhi-Singapore | 20000 – 28000 | 52000 | 64000 |
| Delhi-Paris | 34000 – 44000 | 90000 | 110000 |
You can redeem your accumulated air miles to substantially save on your flights or upgrade, like moving from economy to business clas. This can be done through the credit card issuer’s travel portal or through the airline’s website.
Air miles credit cards that are not partnered with an airline would allow you to transfer your accumulated miles to frequent flyer programs of multiple airlines, and even some hotel loyalty programs. This can provide greater flexibility in how you use your miles and potentially offer better redemption values.
How to choose the right air miles credit card?
Consider your airline preferences
Since most air miles credit cards are co-branded with popular airlines, brand loyalty will play a major role when choosing one such card. You can find credit cards co-branded with Vistara, Air India, Indigo, Etihad, British Airways, Qatar Airways and Spice Jet. Consumers who prefer flying with one of these carriers will be able to derive maximum value out of a co-branded card.
For example, those who prefer flying with Air India can get Air India SBI Credit Card Platinum or Signature variant. Similarly, people who prefer Indigo can consider applying for HDFC Bank’s or Kotak Mahindra Bank’s credit cards offered in partnership with Indigo Airlines.
On the other hand, travellers who look for maximum saving irrespective of an airline brand should consider getting an airline-agnostic card such as Axis Atlas or SBI Card Miles. These cards also provide air miles in place of reward points but they are redeemable across multiple travel partners including airlines as well as popular hotel chains.
In this case, the transfer/redemption ratio may also vary across different travel partners. For example, SBI Card Miles ELITE offer a 1:1 redemption ratio for Air Asia or Etihad Airways but if you choose to redeem with Turkish Airlines or Qatar Airways, the redemption ratio reduces to 2:1. Hence, it is important to consider the value that you would get across different airlines.
Read the fine print
Secondly, you should read the terms and conditions related to the air mile redemption. With some cards, you may not be able to set off the entire flight fare against the earned points or miles. There could be certain limit to it. For instance, using HDFC Infinia, you can pay only up to 70% of the ticket value with the miles; the rest has to be paid with your credit card. Some cards may also have spend-based conditions on air miles earning or redemption, which is again an important consideration.
Consider additional travel benefits
Travellers who seek substantial savings through additional benefits like airport lounge access, low forex mark-up fee, etc. can consider getting a premium credit card. With most premium cards, they would be able to get excellent redemption value on point to mile transfer along with added advantages like airport lounge access, priority check-in, excess baggage allowance, low foreign currency markup fee, hotel benefits and more.
Who should take air miles cards?
Air miles credit cards are best-suited for frequent travellers, as they can maximize the benefits by putting travel spends on their cards, accumulating miles and redeeming them for future journeys.
However, consumers looking to save on categories beyond travel should consider all-rounder cards offering good value-back on multiple categories like shopping, dining, etc. or premium cards that come with a higher reward rate across all spends.
Note: An edited version of this article was published in The Hindu on 18 November 2024.