Airline miles and credit-card points may not stretch as far for summer trips as they once did, as higher jet-fuel costs during the Iran war have helped lift airfare and add pressure on travel perks, according to the Associated Press. The report says the U.S. Labor Department found April airfares were 21% higher than a year earlier, and that summer flights are typically more expensive because there is more demand. For travelers planning using an airline-branded card or a rewards card aimed at seat upgrades or other benefits, that can mean paying more cash, choosing different routes, or adjusting travel timing to get the most value out of accounts.
The change is playing out alongside the airlines’ broader shift to pricing systems that adjust more frequently. In earlier years of frequent flyer programs, airlines often published tables that showed how much additional miles a passenger would need for a higher class of service or for a certain distance. Nearly all airlines now continuously adjust both cash and point pricing using dynamic pricing, the AP report says, with award seats priced based on demand similarly to regular fares.
Brian Kelly, the travel and credit card rewards expert behind The Points Guy, said dynamic award pricing and related changes have made it harder to locate the especially large deals travelers saw in earlier years. “There’s no question that dynamic award pricing, higher redemption rates on some domestic routes, and added fees have made it harder to find the outsized deals that travelers enjoyed a decade ago,” Kelly said, adding that this does not necessarily mean points have lost value but that consumers need to redeem more strategically.
As airlines raise prices—both for flights and for ancillary services—some loyalty benefits can become less predictable for people who rely on a specific redemption pattern. The AP report says airlines have increased the checked-baggage fees for domestic flights and many short-haul international flights as carriers work to offset higher jet-fuel costs. It cites United Airlines raising the price of the first checked bag from $40 to $50 and Delta Air Lines raising its first checked bag fee from $35 to $45.
The report also notes that not every traveler faces the same limits. It says airlines still allow some customers to check a bag for free when they are in upper tiers of loyalty programs or when they hold certain co-branded cards. For example, the AP report says customers with cards such as the Delta SkyMiles Card from American Express or United’s card with Chase can check a bag for free.
For travelers considering credit-card rewards instead of tying their plans to one airline, the AP report highlights that many banks offer flexible points that can be used across different loyalty programs. Adam Morvitz, a credit card miles expert and CEO of point.me, said co-branded and bank travel rewards cards can turn spending—such as groceries, gas, or hotel bookings—into points that can fund future trips. Morvitz also said that for beginners, flexible points cards can be preferable to airline-specific options because they can be transferred across loyalty programs and may offer more redemption choices if an airline changes how it prices awards.
The AP report also points to marketing incentives that can help offset higher travel costs, especially around early summer planning. It says financial institutions have been promoting sign-up bonuses for new customers, including offers of 100,000 miles or even 150,000 miles or points for qualifying spending within a specified period, often the first three months. Morvitz said those bonuses can be worth more than $1,000 in travel for some users, though he urged people to track minimum spending requirements to qualify and to use category bonuses and shopping portals where possible.
Despite the potential for summer savings, experts cautioned that the value of rewards disappears when cardholders carry debt. The AP report says the average credit card interest rate is between 21% and 24%, and that even a $1,000 balance can quickly erase any savings from benefits like a complimentary checked bag. Morvitz said travel rewards cards are best for people who treat them like a debit card—spending what they would spend anyway and paying the balance in full each month—because interest makes the math work against consumers.
Hotels can present a similar challenge as loyalty programs restructure. The AP report says Hyatt overhauled its loyalty program, expanding it from three tiers to five, and that while some lower-cost stays might require the same number of points, others—particularly at more upscale properties—may require more. The report also cites a travel blog estimate that some of Hyatt’s most elite properties would cost as much as 67% more with points under the new system, and it quotes Sally French of Nerd Wallet saying: “If you’re sitting on hotel points, don’t sit and hoard them. … They quickly seem to be getting less valuable.”
As demand returns each summer, the practical advice in the AP report is to treat loyalty programs as dynamic and to plan accordingly. Kelly said consumers may need to be more strategic about how they redeem, while Morvitz emphasized aligning cards with actual spending patterns and avoiding interest charges that can eliminate any benefit. For people hoping to use miles or points for seat upgrades, checked bags, or other perks, the report suggests building flexibility into travel choices as award availability and pricing can shift with demand.