United unveils huge MileagePlus shakeup, rewarding cardholders with higher earn rates

United Airlines is leaning in to its cobranded credit card holders, while making it tougher for flyers without a United card or status to earn miles.

United on Thursday revealed it’s slashing mileage earning rates across the board for members without status or a United credit (or debit) card in their wallet, while planning to award more miles to customers who do.

The carrier also plans to offer its credit card holders discounts of at least 10% on every award flight, with price cuts of 15% or more for flyers with Premier status.

These changes apply to tickets purchased on or after April 2.

Altogether, it’s one of the most aggressive moves we’ve seen by a U.S. airline to give prime treatment to customers who carry a card or earn status rather than those who don’t.

Here’s what you need to know.

More miles and deals for United cardholders, fewer for other flyers

If you carry one of United’s cobranded credit (or debit) cards, Thursday’s shake-up should mean more miles and better redemption rates. Ditto for United loyalists with status.

With the upcoming changes, United cardholders could earn up to twice as many miles per dollar spent as non-United cardholders. This is in addition to the miles you’ll earn from your specific United card.

So, if you don’t have a United card or status with the airline, you’ll see fewer miles hit your account going forward.

Here’s a chart breaking down what to expect after April 2 on eligible United flights:

Cardholders will get additional miles based on their elite status tier when paying with their card:

The United℠ Business Card (see rates and fees) and the United Club℠ Business Card saw no earning rates change in this overhaul. Cardholders will continue to earn 2 miles per dollar spent on United purchases.

*Gateway Card unlocks Cardmember earn rate after spending $10,000 on the card within a calendar year.

The information for the United Club Business has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Noncardholders also won’t get access to the best mileage deals — something TPG has already seen happening, increasingly, at the airline.

Here’s how United explained the thinking behind these changes:

“The most rewarding way to fly United is as a MileagePlus member, and the best way to get the most value from the MileagePlus program is to have one of our credit or debit cards,” Chief Commercial Officer Andrew Nocella said in a statement Thursday. “MileagePlus is designed to reward loyalty to United, and our best customers deserve the best benefits in the industry.”

Basic economy restriction

United Airlines customers who book the airline’s basic economy fares will no longer be able to earn miles — unless they have elite status or carry one of the airline’s credit cards.

Beginning in April, the Chicago-based carrier will bar most passengers from earning MileagePlus miles when flying on one of its no-frills fares.

Here’s a breakdown of the new earning rates for basic economy, going into effect April 2:

Flyers with Premier elite status will continue to earn miles, but at a lower rate than they do currently. So will loyalty members who carry an eligible United credit card.

With respect to basic economy, United already had one of the industry’s strictest policies when it comes to the no-frills fares.

The carrier is now the only U.S. airline that bars most passengers from bringing a full-size carry-on bag on board its planes when flying on one of these tickets — though there are exceptions for (you guessed it) cardholders and Premier status members.

Bottom line

United follows in the footsteps of Delta Air Lines, which has long barred its loyalty members from earning miles on basic economy bookings.

American Airlines just implemented a similar policy in December.

United flyers will continue to earn Premier qualifying points on basic fares, as they do today. But they already don’t earn Premier qualifying flights on those bookings.

Related reading:

• 6 things you need to know about United Airlines MileagePlus
• What is United Airlines elite status worth?
• Maximize your airfare: The best credit cards for booking flights
• The best credit cards to reach elite status