In this articleUALFollow your favorite stocksCREATE FREE ACCOUNTNo United Airlines credit card? Soon you’ll earn fewer miles than other travelers.United is overhauling its MileagePlus frequent flyer program to reward travelers with more miles and lower redemption rates, including for some of its long-haul business-class seats — if they have one of the airline’s credit cards. It’s the latest move by an airline to reward its highest-spending customers.The changes mark the biggest shake-up to the lucrative program in more than a decade, when United began rewarding customers for how much they spent — not just how far they flew.United Chief Commercial Officer Andrew Nocella told CNBC in an interview that the airline has been working on the changes for about 18 months and that the carrier is aiming to reward its most loyal customers.The shift also comes as United tries to stand out in an ever more competitive landscape for travel and rewards credit cards. That space also includes American Express’ Platinum, Capital One’s Venture X and Chase’s Sapphire Reserve cards. United Airlines planes are taxiing to takeoff from San Francisco International Airport.Tayfun Coskun | Anadolu | Getty Images”In the credit card space in general, a lot’s changed over the last five to 10 years in terms of the number of travel credit cards that are out there,” Nocella said. “What I’m thinking about as we make these changes for United is to make sure that if you hold the credit card, you put it top of wallet, and then if you don’t hold the credit card, there’s a reason to get the credit card that seems incredibly compelling if you’d like to fly United Airlines and if you’d like to have that … trip to Tahiti or to Rome or wherever we may be able to take you.”The changes take effect April 2. United is planning to show the discounted award flights on its website “so customers can see exactly how much having a United card could save them on their travel,” the airline said.United’s loyalty program update is part of a trend among airlines to reward frequent flyer program members depending on how much they spend. About a decade ago, the major carriers tweaked their loyalty programs to reward customers for dollars spent over miles traveled.Airlines also encourage customers to sign up for their credit cards by offering perks like no fees for checked bags and earlier boarding.What’s changing with United MileagePlus United MileagePlus primary cardholders will get more miles per dollar spent on United flights compared with customers without a card, and higher rates than they do currently. Their earning goes up, too, when they actually use that card to purchase the ticket.Meanwhile, customers without the card will earn less than they do today. For example, a traveler without a co-branded United Airlines credit card will get three miles per dollar spent on a ticket, down from the current five miles. Under the new structure, a cardholder could earn six miles, and more if they use the card to buy it. Those with elite MileagePlus status earn miles at a higher rate, too.United debit cardholders will also receive more miles, once they spend $10,000, United said.Redemption rate discounts for cardholders United will also now allow customers with one of its credit cards to redeem their miles for flights at a discount of at least 10% compared with those without the card.The carrier said that, as an example, an economy-class award ticket that was 15,000 miles will go for 13,500 without elite Premier status. United said it’s setting aside special discounted inventory of award tickets for cardholders, including for top-tier Polaris seats.Read more CNBC airline newsSpirit Airlines sells more planes, calls back 500 flight attendants from furlough ahead of spring breakFAA abruptly halted El Paso flights over Defense Department’s plans for anti-drone technologyPressure mounts on American Airlines CEO as carrier lags rivalsSouthwest ends open seating after 54 years. Here’s what the last flight was likeBoeing outsold Airbus last year for first time since 2018, deliveries rise to 600Perks for elitesThose with elite MileagePlus Premier status will …
