Devaluation of airline miles likely with air travel resumption, but impact unlikely to be severe

RELAXED restrictions mean air travellers are scrambling to get their hands on flight tickets after the Covid-19 pandemic halted leisure trips overseas for almost 2 years. With this, there is likely to be a surge in the redemption of airline miles, and it is up to airlines to manage the trade-off between "earn and burn".

Under the loyalty programmes offered by airlines, consumers can redeem airline tickets using miles. In addition, banks also allow customers to convert credit card points into miles or redeem points for hotel stays. Over the past 2 years, passengers have chalked up points on their credit cards through on-the-ground activities such as dining and shopping.

A Singapore Airlines (SIA) spokesperson told The Business Times that the carrier has seen an increase in KrisFlyer miles balances over the last 2 years. KrisFlyer is SIA's frequent flyer programme.