I’m seeing a whole lot of pushing the US Airways 100% bonus buy or gifting miles offer as a good deal (and I got it in my affiliate inbox as well so I know why it’s getting pushed). The logic seems to go that since US Airways is pending merger with American Airlines AAdvantange their product is about to get much better, so it’s time to get in at the bargain basement price of 1.8 cents a mile (after fees) as opposed to the usual 3.5 cents.
I’ll grant that if you have a specific use for the miles that can be booked right away and there’s a discount to the cost that you would actually book the trip in the class you would actually book the trip with cash that ok, maybe I can advise spending more than a penny a mile.
But speculatively? No way! I would never advise buying miles without a specific purpose for more than a penny each. Why not? The market is just too volatile and you have an asset that is not in your complete control, that is not transferable without cost, and that expires without use.
Last year I bought miles twice: once on US Airways, and once on Delta, and both times I paid a penny per mile. How did I do this? By waiting for the share miles promotions. Sharing miles is when you give miles to another member, and it usually costs a penny per mile. However, from time to time, the airlines give up to 100% bonus on sharing miles, meaning effectively you’re buying miles for a penny each. I haven’t seen share miles yet in 2013, but I won’t buy unless I do.
Original publish date: Aug. 8, 2013
