Lufthansa Miles & More cards

Lufthansa is Planning to Devalue Award Miles

Lufthansa’s Miles & More program has been an okay option for frequent flyers despite its mostly unexceptional award chart and often wild surcharges, mostly due to its strong route options and partner network including the Star Alliance network. However as it has no major transferable point program partner, it’s also more challenging to earn than other point programmes. Sadly the redemption rates are taking a step in the wrong direction as Lufthansa have recently announced that the cost of most awards will increase from May 9th 2019.

The new mileage changes are being compared to a few others we’ve seen over the past year or so, but Lufthansa definitely gets credit for providing plenty of warning when other airlines haven’t. Regardless, the price increases are widespread and none of the awards are getting less expensive so the new reward chart shows a clear devaluation.

Most Lufthansa premium award rates are going up

If you’re planning to book Lufthansa’s first class product through Miles & More be warned that your award rates will be much higher from May 2019. Unfortunately these awards will be hardest hit when the new reward chart goes into effect. Roughly 85% of business class awards will increase, with most of them increasing by either 5,000 or 7,000 miles round-trip (around a 5% increase). The only two tickets showing a greater increase are Lufthansa’s three-region and round-the-world awards which are both going up by 10,000 miles.

But all is not lost and there are a few positives! The first is that business class seats between the mainland US and Hawaii remain unchanged, at 35,000 miles one-way. This is still a strong option, especially if you live near a United hub. Another positive is that the price increase on business class flights within continental US isn’t too bad. Continental US flights are currently available for as low as 17,000 miles one-way, with those awards among the best deals Miles & More offers. Thankfully that will still be the case when the one-way price jumps up a little to 20,000 miles in May.

First class award rates are also going up across the board at an average increase of 5.6% (mostly by either 5,000 or 12,000 miles round-trip). The three-region and round-the-world awards are two of three exceptions as both will go up by 20,000 miles. The third exception is awards between Southern Africa and India which are very weirdly going up by 22,000 miles round-trip (roughly 13%) – that’s the greatest nominal increase to be found in the new Lufthansa award mile chart.

Lufthansa Miles & More economy awards are less affected

Unlike Lufthansa’s premium awards only 15% of published economy awards are increasing, most by just 5,000 miles round-trip, with the only one increasing by more than that being between the US and Europe; while the normal price is 60,000 miles round-trip, Miles & More offers a 10,000-mile discount to US-based members departing from the US. That discount will disappear in May. For the awards increasing by 5,000 miles, those extra 5,000 miles represent a large percentage increase compared to most of the premium awards, but that’s only because the economy rates are relatively low anyway.

The other changes apply to economy awards within a single region (such as Europe or Southeast Asia). Those flights currently cost 30,000 miles round-trip but will require 35,000 miles round-trip starting in May 2019 (apart from US domestic flights, which jump from 25,000 miles to 30,000 miles). To be honest, few of those intra-regional awards offer much value even at the current price, so while any increase is disappointing at least the higher economy rates are confined to less desirable options.

The rest of the economy chart will stay intact, so you can still get solid value (from awards such as North America to South America for 60,000 miles round-trip) as long as you avoid fuel surcharges.

Rate increase for the Middle East

One last de facto rate increase applies only to Miles & More members in Egypt, Algeria, Israel, Jordan, Lebanon, Libya, Morocco, Syria and Tunisia. Those members currently pay the (lower) intra-Europe rate for travel to Europe from their home countries. However, starting in May, awards levels for the Middle East / Caucasus / North / Central Africa will apply instead.

Finally, Lufthansa appears to be preserving its Mileage Bargains, which are discounted rates offered between select destinations similar to Flying Blue’s Promo Awards. Prices may go up slightly in concert with the cost of regular awards, but it’s good to know these bargains won’t disappear entirely.

Alternative Star Alliance programs

As noted earlier, the Miles & More program isn’t as accessible to US or UK-based award travellers as others out there thanks to no transfer agreement with a major credit card. While you can transfer Marriott points at a 3:1 ratio (with a 5,000-mile bonus for every 60,000 points transferred), that may not represent the best value proposition given the other valuable uses for that currency.

If you’re in the US there are many other Star Alliance programs that do partner with transferable programs like American Express Membership Rewards, Chase Ultimate Rewards, and the recently-enhanced Capital One program. This gives you plenty of options to redeem miles for your flights on the alliance’s more than two dozen member airlines, including programs like Air Canada Aeroplan and Avianca LifeMiles, the latter of which doesn’t impose fuel surcharges on any Star Alliance award ticket. In the UK both SAS and Singapore Airlines partner with American Express Membership Rewards, and you can earn Miles & More points with the UK Lufthansa Miles & More credit card.

A sweeping increase in premium award prices is usually bad news, but as far as devaluations go this one is mild. The sweet spots in the Miles & More award chart might be a little less sweet after May 9, but they’ll still be competitive. If you’re consistently getting value from the program now, you should still be able to do so at the higher rates. If you’re not yet familiar with Miles & More, it’s still worth a look.

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