Transfer miles or buy outright to gift flights?
Cathleen McCarthy is a journalist whose articles on travel, commerce and consumer topics have appeared in dozens of publications. She writes "Cashing In," a weekly column about credit card rewards programs, for CreditCards.com
Ask a question.
'Cashing In' archive
Dear Cashing In,
sister could use a vacation, but can't afford to go anywhere right now. I've got plenty of miles to share and would love to surprise her with a flight. How does one go about "gifting" frequent flier miles to someone? -- Audrey
What a generous impulse! Your
sister is going to love you for this one.
The simplest and cheapest way to
gift her a flight is to buy it yourself using your own award miles and put it
in her name. If you'd rather leave it to her to arrange her own trip, you can
transfer your miles into an account under her name, but you'll have to pay some
fees -- and they can add up fast.
Also, it may be difficult to
surprise her with a fait accompli if you do it this way, given she's going to have
to set up a frequent flier account with your airline and give you the account
number before you can make the transfer.
You didn't say which airline
your miles are on, but most airlines make it easy to do this. Each airline has
variations on rules for transferring miles. A quick search of the airline's
website should turn up the guidelines and fees. You will have to log in to your
frequent flier account and fill out a form, including your sister's account
number and email address. Miles are usually transferrable in increments of
1,000 and transfers are nonrefundable. Transferred miles will automatically be
deposited into the account you identified and your sister will receive email
notification of the transfer.
Limits to how many miles you can
transfer vary by airline. If your miles are with United Airlines' MileagePlus, for
example, you have to transfer a minimum of 2,000 miles at a time. However, while
you're allowed to transfer up to 60,000 per year to three recipients, a MileagePlus
member is only allowed to receive up to 15,000 miles in one year. That means
you can only gift your sister 15,000 miles for her birthday -- not enough for a
round-trip fare, unfortunately, unless she already has 10,000 banked with
United. (Round-trip domestic award fares start at 25,000 miles.) If she
doesn't, you or she can supplement your 15,000-mile gift by buying additional
The bad news: United charges
$.015 per mile just to transfer the first 15,000 miles, which will cost you
$225 -- a hefty sum, considering it only covers 60 percent of the lowest-tier
domestic fare of 25,000 miles.
American Airlines limits you to
a maximum of 15,000 miles in one transaction and 60,000 miles total in a year,
charging $50 for transfers of 1,000 to 5,000 miles, $100 for 6,000 to 10,000
miles, and $150 for 11,000 to 15,000 miles, not including taxes and a $30
transaction fee. So giving your sister 25,000 miles on
American Airlines would cost you $310 plus tax ($150 plus a $30 transaction fee
to transfer the first 15,000 miles plus $100 and a $30 transaction fee to
transfer the remaining 10,000 miles).
If your miles are with Delta
SkyMiles, you can share up to 30,000 miles at a time -- enough to cover a round-trip
domestic fare, with a bit to spare. Delta charges one cent per mile transferred,
but tacks on a $30 processing fee. For that fee, you can transfer 1,000 to
30,000 miles at a time, in 1,000-mile increments. Transferring
those 25,000 miles will cost you $280 plus tax (25,000 miles x 1 cent per mile
+ $30 transaction fee).
There are also airline gift cards, but you have to make sure all the terms and conditions of the card meet the needs of the recipient. See "Giving the gift of flight with airline gift cards."
Now you can see why I advise
purchasing the ticket yourself, using your own miles. My advice is to print out
a makeshift gift card for her that says "one round-trip airfare" -- and hope
she doesn't hit you up for a trip to Hong Kong.
See related: The greatest gift of all: free travel
Meet CreditCards.com's reader Q&A experts
Vexed by a personal finance problem? CreditCards.com's Q&A experts answer questions from readers every weekday. Ask a question, or click on any expert to see their previous answers.
Published: April 10, 2012
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!