American Airlines is running a mile purchase bonus promotion right now and it’s pretty good. Typically, buying miles is a bad idea. You’ll buy them for $0.03 a mile and redeem them at $0.02. You’re better off just paying cash in that case.
But this promo is a bit different. You can get up to 115,000 bonus miles, when you purchase the max 150,000 for $4,425. Sounds like a lot, but that comes out $0.017 a mile. That’s pretty good. Like all mile-purchase promotions, you should only buy the miles if you have a use for them. Buying miles speculatively rarely makes sense.
Let’s look at a real example though: you want to take your family of 5 from Dallas to Honolulu, HI. Each round-trip ticket costs $1,055. That’s $5,275 in airfare for the family. But now let’s look at the miles: the same trip costs 40,000 miles. You’ll need 200,000 miles to cover the costs.
With the promo, 125,000 plus 75,000 bonus miles costs $3,687.50. You can reserve the award tickets, buy the miles, book the tickets and save $1,588!
If you’re planning some travel, you should definitely check out the promotion here. You might be able to score yourself some pretty good savings. The math is pretty easy and chances are that you can find some success.