United Airlines Overhauls MileagePlus, Cuts Rewards for Non-Cardholders

United Airlines is implementing a significant overhaul of its MileagePlus loyalty program that will sharply reduce mileage earning for members who do not hold one of the airline's co-branded credit cards. The changes, which take effect for tickets purchased on or after April 2, 2026, create a stark two-tier system designed to drive credit card adoption and deepen the integration between the airline's flight operations and its highly profitable financial partnerships.

The new structure represents a major strategic shift, further cementing the industry trend of loyalty programs rewarding overall consumer spending more than actual flights. For millions of infrequent flyers or those who prefer not to carry an airline-specific credit card, the value proposition of the MileagePlus program will be substantially diminished.

Deeper Earning Disparities

Under the new rules, the earning rate for general MileagePlus members without a United credit card will be cut by 40%, dropping from the current 5 miles per dollar to just 3 miles per dollar. In contrast, general members who hold an eligible co-branded credit card will see their earning rate increase to 6 miles per dollar, double the rate of their non-cardholding counterparts. This change creates the widest earning gap between cardholders and non-cardholders in the program's history.

United's Chief Commercial Officer, Andrew Nocella, framed the changes as a reward for the airline's most committed customers. "The most rewarding way to fly United is as a MileagePlus member, and the best way to get the most value from the MileagePlus program is to have one of our credit or debit cards," Nocella stated. "MileagePlus is designed to reward loyalty to United, and our best customers deserve the best benefits in the industry."

Award Redemption and Basic Economy Changes

The overhaul extends beyond mileage earning to award redemptions and benefits for travelers on the airline's most restrictive fares. In a move to add direct value for cardholders, United will offer at least a 10% discount on all award flight bookings made by members with a co-branded card. According to a United Airlines press release, Premier elite members with a card will receive a minimum 15% discount on award bookings.

Perhaps the most punitive change targets customers purchasing Basic Economy tickets. Under the new policy, non-elite members traveling on these fares will no longer earn any redeemable miles, Premier Qualifying Points (PQP), or Premier Qualifying Flights (PQF) unless they hold a United co-branded credit card. This effectively removes any loyalty incentive for budget-conscious travelers who do not subscribe to United's credit card ecosystem.

Financial and Regulatory Context

These changes underscore the immense financial importance of loyalty programs for major carriers. According to a United Airlines investor presentation, the MileagePlus program generated $5.3 billion in cash flow in 2019 alone. More recently, the airline's earnings report showed loyalty revenue grew 9% for the full year of 2025, a year in which the carrier flew a record 181 million passengers.

This strategic pivot comes as airline loyalty programs face increased scrutiny. In September 2024, the U.S. Department of Transportation (DOT) launched an inquiry into the frequent flyer programs of the four largest U.S. airlines. The probe focuses on potential unfair or deceptive practices, including the devaluation of rewards and a lack of transparency, issues that critics may argue are central to United's latest changes.

The airline industry has increasingly relied on co-branded credit cards as a primary revenue stream. Airlines for America (A4A), an industry trade group, estimates there are nearly 30 million U.S. airline industry credit card holders, highlighting the scale of this market.

Why This Matters

In my view, this overhaul is less about rewarding loyalty to flying and more about enforcing loyalty to a financial product. United is making an explicit calculation that the revenue gained from new credit card sign-ups and increased spending from existing cardholders will outweigh any potential loss of business from alienated customers. This move effectively transforms MileagePlus from a frequent flyer program into a credit card rewards program that happens to be attached to an airline. It forces a decision point for travelers: either commit fully to the United ecosystem via its credit card or see your loyalty significantly devalued, a trend that is likely to accelerate across the industry.

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