UPDATE: Australian American Express cardholders have just over two weeks to act before a significant devaluation of the Membership Rewards program on December 15. Starting at midnight, Amex points will lose approximately 50 percent of their value when transferred to various airline partners, drastically affecting travel plans for many.
This change means that points transferred to airlines like British Airways, Cathay Pacific, Etihad, Malaysia Airlines, Qatar Airways, and Virgin Atlantic will shift from a 2:1 exchange rate to a less favorable 3:1. The only exceptions are the transfers to Qantas Frequent Flyer and Virgin Australia’s Velocity program, which remain at 2:1.
According to Steve Hui, CEO of iFlyFlat, this drastic move is a “massive shake-up.” He notes, “No airline would devalue their program by 50 percent in one hit,” indicating that American Express is taking proactive steps to remain competitive amid changing market dynamics.
The devaluation is not uniform across all airline partners. For instance, Singapore Airlines retains its 3:1 transfer rate, while Emirates Skywards faces the most significant downgrade at 4:1, which will also incur taxes and surcharges.
For years, Amex’s Membership Rewards program has been a cornerstone for travelers who prefer flexibility, allowing them to transfer points to the airline of their choice. However, with this impending change, cardholders are urged to act quickly. Hui advises travelers to consider their destinations and plan accordingly. For example, Qatar Airways is ideal for trips to Europe, while Cathay Pacific is recommended for Asia.
To maximize the remaining value of points before the deadline, Hui suggests calculating the exact number of points needed for specific flights. “If you need four business-class seats to Europe, send enough points to cover it—so you’re not topping up later at the new rate,” he emphasized. Currently, travelers would need 440,000 Cathay Pacific miles or 580,000 Avios points on British Airways to secure those seats.
Other notable changes include the removal of Thai Airways from the program, while Everyday Rewards through Woolworths has been added, allowing a backdoor option to earn Qantas Points at a 5:4 earning rate.
Points expert Adele Eliseo warns that these shifts are steering customers toward domestic programs with Qantas and Virgin, making global airline seat availability more limited. She urges cardholders to act swiftly, especially for those seeking premium cabin seats to Europe, suggesting the Qatar Airways Privilege Club for better redemptions.
The looming deadline raises concerns about the future of point availability. Eliseo highlights a potential issue: “Once the points balances of all the people in these global programs dry up, there will be more competition for Qantas and Velocity seats.”
For immediate redemptions, Jodie Land, general manager of reward travel at The Well Connected Traveller, is directing clients towards Qatar Airways. Their transfer rate remains at 2:1, with low taxes, allowing travelers to book return business-class seats for around 360,000 points.
Amid these changes, business owners still find value in Amex due to benefits like lounge access and insurance. However, some are exploring overseas cards with lower rates or alternative payment platforms.
This devaluation reflects a broader trend in tightening rewards across the travel industry. Similar adjustments have been noted from airlines like Qantas and Virgin Australia, indicating a shift towards encouraging customers to utilize their miles rather than accumulate them.
ACT NOW: Cardholders have limited time to maximize the value of their points before the devaluation hits. Review your points balance and plan your travel strategies before December 15 to avoid significant losses.
