American Express adds Avios and HawaiianMiles, devalues KrisFlyer and Skywards
Sweeping changes are afoot for Membership Rewards.
Posted:
July 4, 2023 - 11:07 am
What we'll be covering
Membership Rewards (MR) points just became more useful as American Express adds Qatar Airways and Hawaiian Airlines as transfer partners in Australia and New Zealand. Slated to start ‘in the coming months’, the new partnership will make it even easier to use your MR points to travel around the globe.
But there’s also an incoming devaluation to KrisFlyer and Skywards transfers, with the rate set to change in October 2023. Here are all the changes that are coming.
New transfer partners start from August
American Express will add Qatar Airways to the Membership Rewards program in August 2023. Looking to jet to Honolulu and beyond with HawaiianMiles? Hawaiian Airlines will join the program in October 2023. Here are the transfer rates from Membership Rewards to both programs:
- Qatar Airways: 2 MR to 1 Avios in Australia | 3 MR to 1 Avios in NZ
- Hawaiian Airlines: 2 MR to 1 Hawaiian mile in both Australia and NZ
Of particular interest to Point Hacks readers will be the ability to convert MR points to Qatar Airways Privilege Club Avios, opening up a huge new world of redemption opportunities. From Privilege Club, you can transfer Avios 1:1 to British Airways Executive Club and Iberia Plus, which both have very interesting sweet spots.
For example, you only need 90,000 Avios to fly Qatar Airways Business Class between Australia and Europe – including on the famed Qsuite. With Velocity Points, you’d need up to 139,000 points one-way and with Qantas, 159,000 points.
Looking to fly Qantas domestic Business Class instead? Just 22,000 Avios in British Airways Executive Club will unlock a Business Class reward between Perth and Melbourne, compared to the usual 41,500 Qantas Points you’d need with Qantas Frequent Flyer. That’s almost half the points needed!
With Hawaiian Airlines, you’ll need 65,000 Hawaiian miles to fly in Business Class between Sydney and Honolulu, which we reviewed recently. That compares favourably to the usual 78,000 Velocity Points needed.
With both the Qatar Airways Privilege Club and HawaiianMiles programs, you can also pay double the Avios/miles needed for better seat availability. That might come in handy in a pinch.
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KrisFlyer and Skywards become 3:1 in October
From 4 October 2023, you’ll need three Membership Rewards points to transfer to one KrisFlyer mile or Skywards mile. This represents an effective 33% devaluation from the current 2:1 rate and applies to both Australia and New Zealand.
There’s no change to the number of points you can earn from Amex cards. Membership Rewards points also will continue to have no expiry if your account is in good standing.
This is a disappointing change for sure, especially for Singapore Airlines KrisFlyer customers who currently enjoy a decent transfer rate. After the change, it may be worth converting points to Velocity Frequent Flyer, as you can book Singapore Airlines with Velocity Points.
In the future, if a 20% transfer bonus to Velocity returns, you would get more KrisFlyer miles by transferring to Velocity and then converting the points to KrisFlyer miles, rather than transferring to KrisFlyer direct.
- With 20% Velocity bonus: 90,000 MR points = 54,000 Velocity Points = 34,838 KrisFlyer miles
- Direct to KrisFlyer at 3 to 1: 90,000 MR points = 30,000 KrisFlyer miles
If you’re looking to stock up on KrisFlyer miles before the devaluation, take note that there is a 3-year hard expiry.
Summing up
Overall, it’s good news across the board if you’re keen to swap your Membership Rewards points to Qatar Airways Privilege Club or Hawaiian Airlines HawaiianMiles. The biggest win for points aficionados is the addition of the Avios ecosystem to Membership Rewards. But it’s also handy to have an easier (and cheaper way) to redeem miles to Hawaii.
Unfortunately, it also comes at the cost of a KrisFlyer and Skywards devaluation. The 3:1 rate to those programs is actually standard across other Australian bank rewards programs, so American Express will change from market-leader to simply matching the competition. Interestingly, the St.George Amplify program also recently announced a devaluation to KrisFlyer from 2:1 to 3:1.
American Express adds Avios and HawaiianMiles, devalues KrisFlyer and Skywards was last modified: August 24th, 2023 by
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The above is incorrect its 180000 Avios for Syd to LHR not 90000
Sadly that option too is significantly less attractive now that Emirates has increased their fees/charges to obscene level.
Before you do, factor in:
– Prohibitive fuel surcharges on Emirates redemptions
– Inability to redeem onto Qatar premium class redemptions
– Long waits to get reward bookings refunded for non Australian originating itineraries
– Inability of call centre staff to locate and book reward seats when they exist
– Service levels (not in any way comparable to SQ in premium classes)
– SQ has many times more flights in / out Oz connecting per SIN
– substandard international lounges (compared with SQ)
– status harder to attain than SQ’s domestic partner, VA
– domestic biz fights often double the cost of SQ’s domestic partner VA
Luckily, we can all earn huge numbers of QF points very easily and just when we want without worrying what to do with our credit card points…;)
Go for the mixed strategy to harness the strengths fo each program.
If the answer is yes, then there’s probably no big issue, but if no, then I need to transfer sufficient Krysflyer points prior to 4 October to be able redeem for flights next year.
Maybe AMEX should consider a similar compensation plan.
Both JAL and ANA are now at ridiculous levels even for economy awards of $600 one way.
Besides maybe Jetstar redemptions or if you have higher QF status (or chasing points club) I think it also devalues the AMEX platinum transfer to Qantas in a good way as I don’t think it would ever be the cheapest redemption.
The Hawaiaan 2:1 rate could be of interest depending on the miles cost for AKL-HNL.
However if Amex have that 50% bonus offer to transfer to Marriott then I’ll stick with Amex. Seems to be 2x a year. If they stop doing them I might close my card.
USA based Amex has periodic bonus transfers MR to BA Avios, e.g. currently 30%.
Canada based Amex has periodic 40% bonus transfers MR to BA Avios.
Who knows if any will be offered for Oz/ NZ Amex MR to QR Avios in the future…
I’d pretty much given up on using SQ Krisflyer, only worthwhile if one of their spontaneous escapes appeals and the dates work for you-which is not often.
There are better options to fly SQ with points. Also you’d have to look at whether you are better off with just a cashback card and then buy miles when they are on special.
I’d have to look closely at whether it’s worth the $1250nzd fee for amex charge card. There’d have to be a pretty hefty renewal bonus for our situation. I’m using amex less and less anyway for personal expenditure as the Wise fx rates are just far better and Wise has the ATM functionality when overseas.
I guess this change has been imposed on amex nz & au by SQ who want more money from amex for their krisflyer miles.
Cashback card may become a compelling option – if we earn 2/3 points per dollar once transferred to Krisflyer miles than we’d have to attain spectacular redemption values (e.g. A380 Suites on Saver Awards) to even get close to a 5 to 6% net return. Most customers are probably dithering around with very low percentage net returns…..;)
I was talking about buying Aeroplan miles or alaska miles on special. Not that great a deal though as the nzd is so weak .
The equation for nz amex card holders is different to the Oz amex deal. We have a 1:1 transfer rate to Marriott. I believe it’s 2:1 for MR to Marriott rewards isn’t it?
On Oz Amex we have to wait for a transfer bonus to make transfer to Marriott Bonvoy a worthwhile option.
My general point was to agree that cash back credit cards may be more beneficial to many because the net return can be low when you factor in points per dollar earned and redemption value of reward.
It’s great that FINALLY we’re able to convert AmEx points to Avios, and at a very good transfer rate too (2:1). I’ve been pushing for AmEx to allow Avios transfers in my personal feedback to them, so I can’t complain that they’ve listened!
On the other hand, devaluing KrisFlyer transfers is a real kick in the guts. I’ll wait until the dust settles, and 3:1 is better than nothing. But I’m very seriously considering ditching KF and using Air Canada Aeroplan for my Star Alliance redemptions.
In fact, my feedback to AmEx will now focus on asking them to include Aeroplan as a transfer partner.
Perhaps time to consider the Star Alliance credit card – seems to offer 0.8 Krisflyer / Aeroplan miles per dollar spend (if I understand the terms correctly). Add on the flexibility…what do you think?
That’s a good point and the Star Alliance card is definitely worth considering. Mind you, I generally take out cards for the sign-up bonuses more than the ongoing spending. The good news for me is that my focus is more on Europe than on Asia, so gaining Qatar and losing KrisFlyer is probably a net gain. For someone focussed on Asia (especially east Asia), it would be a let loss.