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United Continental to give more miles to higher fares

ByABC News
September 21, 2011, 8:53 PM

— -- Frequent fliers on United and Continental will get extra miles for buying more-expensive seats starting next year.

That's the main change announced Wednesday in how the newly merged airline's combined 85 million frequent fliers will earn miles when reservation systems are merged in 2012. Among changes:

•Fliers who buy first-class seats can accrue up to 2.5 reward miles for every mile they fly in the program, which will keep the MileagePlus name. Extra miles also will be awarded for buying tickets in business class or paying full fare for a spot in coach.

•Continental OnePass members for the first time will see their miles expire after 18 months of inactivity like United members have experienced. But the new clock won't start ticking until next year.

•There will be four levels of premier status for members. Previously each airline offered only three.

The increased rewards are a bid for the highly coveted business traveler, who is more likely to book a trip at the last minute and pay higher ticket prices.

"They are people who want to accrue miles for upgrades, especially on international flights," says Rahsaan Johnson, a spokesman for United and Continental. "So what these changes enable us to do is reward them for buying the premium fares (and) … we hope it gets those customers flying those other airlines to buy those premium fares on United."

Earlier this year, Southwest changed its rewards program to issue points based on ticket price rather than distance — a change in the traditional frequent-flier model of rewarding travelers for miles flown.

Randy Petersen, an expert on frequent-flier programs and founder of InsideFlyer magazine, says it's good news for travelers that United and Continental didn't copy Southwest's program completely.

Despite offering greater rewards for higher-priced seats, he says, "A mile flown (on United Continental) is still a mile earned. There's nothing that changed in the basic essence of the frequent-flier program."

Loyalty programs have been a financial boon for the airline industry. But some corporate trekkers have complained that it often takes more miles than in the past to earn a free trip.