I watched the entire thing and I agree with you if a viewer only wants to know the answer to the question posed by the title. The front part only talks about what are miles, selling miles to bank at a discount during this period and US airlines struggling to stay afloat
they want that sweet Ad money, you have to have a video be 10 mins at least to squeeze ever last drop of money. Would you look at that, its exactly 10:00 long.
Thank you, I've been observing recently that a lot cnbc videos have been stretching things that can be answered in 30 seconds, to 15mins, for that sweet sweet ad money
By investing in a company you did accept those risks. Your meant to ride the company through the hard times and the good. I don't know what else could happen to stock from bankrupt companies
that's why it's important to not invest money that you need and to do thorough research of the company you're investing, balance sheet, P/E ratio...etc..
At least you can use the government's printed money for most things. You have to be lucky if you manage to use the airline miles on something you actually need.
also in the video they said that airlines have been cutting back and making it more difficult to redeem miles... so if there are even more miles up for grabs isn't that going to exacerbate the problem even more? it's like inflation.
It may very well have always been that way, but who is gonna read through their program terms just to find this out. Most people will find out about expiring miles, after their miles are expired. Also, it doesn't matter if it has been this way all along or not. They are not on par with their competitors, so piece out American.
American miles are among the easiest to keep from expiring though, you can shop through their portal, go to a restaurant in their dining program, even take a survey for free. They all have shopping portals that can be installed as a browser plug-in so you don't even have to go through their website first...
Unlike the other carriers I know, American Airlines didn't allow me to purchase 2k miles to extend benefits. So, they let my account with around 25k to expire. After that, I let them know I never want to flight with AA anymore and that I wanted my customer account to be removed from client database.
@@EnchantedSmellyWolf Not everyone has a regal booming voice like you Uriel. Don't judge people who didn't get formal speech training from the imperial Toastmasters of Cyrodiil.
Exactly, people are better at thing than others. He shouldn't be a narrator. Too distracting and annoying for most people, and before people go all stupid. It like a singer. Everyone can "sing", but lots shouldn't.
A 10 minute video to tell us something that can be condensed into 30 seconds: -if the airline goes through ch11 (protection), business as usual -if the airline shuts down or merges, you probably lose all your miles.
Airlines won't go bankrupt. Major airlines will get government help. Also, post Covid it's unlikely that they'll be too worried about their flyer miles. Ps. Thank you for supporting my Channel
You are mistaken. At least ONE airline will go bankrupt. Unfortunately, they won't be able to merge since most other companies won't be able absorb the airplanes.
I'd say this: if you have FREQUENT FLYER POINTS with ANY OF THE 9 US-BASED AIRLINES (those that "fly their own metal") you'll be FINE FOR AT LEAST 2020 if not 2021, as they're pretty much "shielded" by both the US Gov't and the way their Domestic Market works. Also in most cases if they're from a Latin American-based (check LATAM or Avianca) or in some cases Asian-based airlines (check Thai's case) those airlines have the option to go through either US Chapter 11 (REORGANIZATION BANKRUPTCY) or a local equivalent. Those also will not cease abruptly. The problem is with both European-based and Australian-based airlines in which their Gov't regulators doesn't give a proper REORGANIZATION OPTION. In those cases frequent flyers should keep watching the news closely to watch out for ANY ABRUPT CEASE OF OPERATIONS.
I think hotel points are a better value than airline miles. Nicer amenities enjoyable over a longer time, wider and more stable options, less carbon output per patron, and not as likely to suddenly disappear since properties can be sold much easier than a plane.
Everything is working itself out. Nice. ... America took early action to ensure economic infrastructure was secured for daily operations, as well as providing daily problems to solve: ventilators, masks, food, drugs, vaccines. We did a pretty damn good job handling chaos even if we thought everything was failing or would fail.
Cause as a non-rich person you should be churning credit cards and getting free points and cash back every few months.... I make about 2k a year just by signing up for a new credit card every few months. And i only spend about 24k/yr..
I never trusted any loyalty program unless it states the cash value in dollars. Example: Citi Bank Costco Visa you get 3% cash back for travel, that's $90 Dollar of free money after buying tickets for $3K. While travel loyalty programs gives you points that are revalued and devalued over and over till you find out that they don't get you anywhere and sometimes don't cover the taxes, it cover the fare only.
The main problem is that there isn't anywhere to fly. Almost every country has closed its borders. I haven't seen my fiancé in over 4 months now because I'm stuck on the other side of the atlantic. I'd jump on a flight today if I'd be able to enter the country I'd be flying to.
If a airline files for bankruptcy, as they have done before, the owner of it's stock might as well place the stock certificates in their bathrooms next to the toilet. The same applies to the frequent flyer miles.
I never got the point, I fly whichever airlines has the cheapest flight from my city to another. I upgrade for $80 if I want a business or first seat. I've upgraded for $250 from regular to business for international flights. That's significantly cheaper than restricting yourself to solely one airline and still paying premium dollar.
the same thing that happens to your money if the bank goes bankrupt... and you know they're going to run the value of the miles right into the ground when people start trying to use them.
We are in the middle of a global pandemic, nationwide social unrest, soon to be followed by a recession and some people are worried about their frequent flyer miles? Screw them.
i rarely travel and when i do its always international so ive never really understood the hype about mile programs since i prefer just exchanging my Chase Sapphire points for any airlines i choose fit.
I will take cash instead. Any company can go bankrupt at any moment. Imagine you have Enron mileage, or MCI Worldcom mileage, Sears mileage, JC Penny mileage.
The loyalty programs of the legacy carriers have been watered down so much, they're hardly even useful anymore. Rewards credit cards with their own points are the way to go now.
No airlines sell the miles to credit card companies. And then the credit card companies gives you the miles as rewards for using their card over another card. If you as the card holder never uses the miles, the card company can give them to another card holder instead. So read your contract in your credit card rewards programs.
Any airlines that survive this crisis, will see enormous profit afterward. People will have way less choices since many goes out of business. And 2020 is not 2008, 2009, back then social media didn't exist, people keep up with news online everyday, positive new will definitely boost people confident to travel again.
Oh well doesn't affect me; I have been using buses, trains, and cars for a while. I have a fear of flying and don't like the busy, stressful airport been a while since I have stepped foot on a plane or airport.
I read somewhere that top airlines spent 97% of their free cash flow over the past decade on stock buybacks. Apparently, people should have enough money set aside to cover 3 to 6 months of expense, but those corporations that employ those people don't abide by the same rules. Yeah, ridiculous.
Thank god my miles are earned with the credit card so they can be applied to any airline, I have the capital one venture, the miles earned can be redeemed against any airline ticket🙏🏾🙏🏾🙏🏾
There are many fools such as Flyertalk posters buying gift cards on their airline credit cards because the rewards are much better than cashback cards. Right now there are folks with over a million miles from credit card manufactured spend. Good luck trying to spend down the millions of frequent flyer miles vs. cold hard cash even with no airline bankruptcy.
People's desire for status drives loyalty to certain airlines. I've got coworkers who will take a flight with a layover versus a direct option because they have status with the airline operating the layover option. I'm using Google Flights to find the cheapest option available...status be darned. To summarize: nothing is free and you shouldn't be surprised if these perks disappear when airline demand is down 90%. 1st world problems indeed.
You can safely fast forward to 8:00 for the answer to "What Happens To Frequent Flyer Miles If An Airline Goes Bankrupt?"
I watched the entire thing and I agree with you if a viewer only wants to know the answer to the question posed by the title. The front part only talks about what are miles, selling miles to bank at a discount during this period and US airlines struggling to stay afloat
Thank you! 😂
Thanks!
Thanks
More specifically, just watch 8:30 - 8:37.
@8:00 you'll get the answer to the bankruptsy question. The rest is just fill.
Thank you very much
Thank you for your public service.
You the man!!!!
❤️thank you!
You are the real MVP💪
Fast forward to 8:00 if all you want is just the answer.
they want that sweet Ad money, you have to have a video be 10 mins at least to squeeze ever last drop of money. Would you look at that, its exactly 10:00 long.
Thank you for saving me 8min
Thank you, I've been observing recently that a lot cnbc videos have been stretching things that can be answered in 30 seconds, to 15mins, for that sweet sweet ad money
Thx man
thank you
While I have a ton of aeroplan miles and hope not to lose them. This is definitely the epitome of a first world problem.
I'm assuming the same thing happens when you have stock in a company that folds.... you just lose it...
By investing in a company you did accept those risks. Your meant to ride the company through the hard times and the good. I don't know what else could happen to stock from bankrupt companies
More like a preferred bond than shares but there is a risk of loss.
that's why it's important to not invest money that you need and to do thorough research of the company you're investing, balance sheet, P/E ratio...etc..
Airline miles is like governments printing money....it will always devalue over time
At least you can use the government's printed money for most things. You have to be lucky if you manage to use the airline miles on something you actually need.
also in the video they said that airlines have been cutting back and making it more difficult to redeem miles... so if there are even more miles up for grabs isn't that going to exacerbate the problem even more? it's like inflation.
This video is not true for all countries
ruclips.net/video/9Lc8xKvzW8E/видео.html
Airline can go bankrupt, government cant doesnt wont wouldnt
Is it just me who finds that moving icon in the corner VERY distracting
I didn’t notice till you made me
What I heard from this video:
American Airlines has expiring miles. . .I will be switching to another airline.
Billy Bob As far as I am aware, it has always been that way at American Airlines.
Scott Roth as a former American employee, this is correct
It may very well have always been that way, but who is gonna read through their program terms just to find this out. Most people will find out about expiring miles, after their miles are expired.
Also, it doesn't matter if it has been this way all along or not. They are not on par with their competitors, so piece out American.
@@ScottRothsroth0616 Delta and United too, until they didn't.
American miles are among the easiest to keep from expiring though, you can shop through their portal, go to a restaurant in their dining program, even take a survey for free. They all have shopping portals that can be installed as a browser plug-in so you don't even have to go through their website first...
What I heard was :”If you pay more with your credit card, you will fly more for free!”
Yup! A bunch of fluff
The narrator talks with a certain you know... Oumph
This is certainly not a noteworthy topic in this prevailing situation.
he's just has the mic too close to his mouth.
Out of work flight attendent.
Unlike the other carriers I know, American Airlines didn't allow me to purchase 2k miles to extend benefits. So, they let my account with around 25k to expire. After that, I let them know I never want to flight with AA anymore and that I wanted my customer account to be removed from client database.
Let me be off topic ; what's with the narrator's VOICE ????
He doesn't drink enough water and you can clearly hear his mouth. Disgusting.
@@EnchantedSmellyWolf Not everyone has a regal booming voice like you Uriel. Don't judge people who didn't get formal speech training from the imperial Toastmasters of Cyrodiil.
Exactly, people are better at thing than others. He shouldn't be a narrator. Too distracting and annoying for most people, and before people go all stupid. It like a singer. Everyone can "sing", but lots shouldn't.
He's passionate
he's just has the mic too close to his mouth.
A 10 minute video to tell us something that can be condensed into 30 seconds:
-if the airline goes through ch11 (protection), business as usual
-if the airline shuts down or merges, you probably lose all your miles.
Airlines won't go bankrupt. Major airlines will get government help. Also, post Covid it's unlikely that they'll be too worried about their flyer miles.
Ps. Thank you for supporting my Channel
Chaotic Finance look at their balance sheet. American’s balance sheet is terrible. Government might have to choose which airlines to save.
So none of them will go under lol
You are mistaken. At least ONE airline will go bankrupt. Unfortunately, they won't be able to merge since most other companies won't be able absorb the airplanes.
There are no words to describe my feelings now. Congratulations, this video is really good
Points are dumb. It's just a refund on credit card swipe/transaction fees. That's why 10,000 points is equivalent to $100.
These videos need to get straight to the point, MAKE THEM SHORTER!!!
So a 10 minutes video, only at the 8th minute does the question get answered. 20% efficiency. Great job! CNBC.
Unfortunately this doesn’t answer the big question I do have: How does a frequent flyer program (AAdvantage) even work as government collateral?
caution, you are now getting into wendover productions territory
What’s about Alaska Airlines? Totally missing in this video :(
Something interesting I never thought about
In 2016 in Russia the Transaero airline went bankrupt. All frequent flier miles were lost.
I haven't flown since 1995.
I'd say this: if you have FREQUENT FLYER POINTS with ANY OF THE 9 US-BASED AIRLINES (those that "fly their own metal") you'll be FINE FOR AT LEAST 2020 if not 2021, as they're pretty much "shielded" by both the US Gov't and the way their Domestic Market works.
Also in most cases if they're from a Latin American-based (check LATAM or Avianca) or in some cases Asian-based airlines (check Thai's case) those airlines have the option to go through either US Chapter 11 (REORGANIZATION BANKRUPTCY) or a local equivalent. Those also will not cease abruptly.
The problem is with both European-based and Australian-based airlines in which their Gov't regulators doesn't give a proper REORGANIZATION OPTION. In those cases frequent flyers should keep watching the news closely to watch out for ANY ABRUPT CEASE OF OPERATIONS.
I think hotel points are a better value than airline miles. Nicer amenities enjoyable over a longer time, wider and more stable options, less carbon output per patron, and not as likely to suddenly disappear since properties can be sold much easier than a plane.
Everything is working itself out. Nice.
...
America took early action to ensure economic infrastructure was secured for daily operations, as well as providing daily problems to solve: ventilators, masks, food, drugs, vaccines.
We did a pretty damn good job handling chaos even if we thought everything was failing or would fail.
Great info
Why am I watching this? I’m not even rich
Cause as a non-rich person you should be churning credit cards and getting free points and cash back every few months....
I make about 2k a year just by signing up for a new credit card every few months. And i only spend about 24k/yr..
lol i feel you :)
Yep, this has happened to everyone in my city. We only had one airline at our airport, and they went bankrupt. Those miles are just gone...
If you don’t mind me asking , what airline was that?
Nice content
I never trusted any loyalty program unless it states the cash value in dollars. Example: Citi Bank Costco Visa you get 3% cash back for travel, that's $90 Dollar of free money after buying tickets for $3K. While travel loyalty programs gives you points that are revalued and devalued over and over till you find out that they don't get you anywhere and sometimes don't cover the taxes, it cover the fare only.
The main problem is that there isn't anywhere to fly. Almost every country has closed its borders. I haven't seen my fiancé in over 4 months now because I'm stuck on the other side of the atlantic. I'd jump on a flight today if I'd be able to enter the country I'd be flying to.
If a airline files for bankruptcy, as they have done before, the owner of it's stock might as well place the stock certificates in their bathrooms next to the toilet. The same applies to the frequent flyer miles.
well pretty much what happens if you don't use the airline regularly. they start deducting them or charge money to keep them.
if you manage to see whats coming and transfer within 24 hours or as soon as options shows then you might be lucky
TLDR: Your miles are safe unless the airline merges or get absorbed by another airline.
What's to stop the airlines from devaluing the points after flooding the market? Is there any devaluation agreements with the credit card companies?
You guys needed to analyze Southwest Airlines as well because they’re considered an American giant like AA and UA
whats this frequent flyer thing? we dont have such thing here in europe
Airline traffic down by 90%, but flights are still in the hundreds of dollars. 🤔🤨
How, Sway??
SupermanHopkins “Sway don’t gotta answers” lol
I never got the point, I fly whichever airlines has the cheapest flight from my city to another. I upgrade for $80 if I want a business or first seat. I've upgraded for $250 from regular to business for international flights. That's significantly cheaper than restricting yourself to solely one airline and still paying premium dollar.
the same thing that happens to your money if the bank goes bankrupt...
and you know they're going to run the value of the miles right into the ground when people start trying to use them.
We are in the middle of a global pandemic, nationwide social unrest, soon to be followed by a recession and some people are worried about their frequent flyer miles? Screw them.
You can skip the first 8 minutes to get the answer.
there have been at least a dozen comments before yours stating that already...
This will be the future of it.
Why didn't you guys mention Southwest
Planes park like vehicles lol
i rarely travel and when i do its always international so ive never really understood the hype about mile programs since i prefer just exchanging my Chase Sapphire points for any airlines i choose fit.
“Your miles won’t go away” “American Airlines 18 months” who do I believe
I will take cash instead. Any company can go bankrupt at any moment. Imagine you have Enron mileage, or MCI Worldcom mileage, Sears mileage, JC Penny mileage.
You really have to ask..................................they turn into frequent driving miles.
The loyalty programs of the legacy carriers have been watered down so much, they're hardly even useful anymore. Rewards credit cards with their own points are the way to go now.
So airlines make money from give cards that people never uses. Congratulations American is Chills
No airlines sell the miles to credit card companies. And then the credit card companies gives you the miles as rewards for using their card over another card.
If you as the card holder never uses the miles, the card company can give them to another card holder instead. So read your contract in your credit card rewards programs.
Ahhh, CNBC answering the big questions that we want to know. Its not like theres anything else to talk about right now...
Long story short. If an airline goes bankrupt, you lose your miles.
Any airlines that survive this crisis, will see enormous profit afterward. People will have way less choices since many goes out of business. And 2020 is not 2008, 2009, back then social media didn't exist, people keep up with news online everyday, positive new will definitely boost people confident to travel again.
I hear a paddle boat is in high demand right now. ⛵
...and you get to pay a couple more points of interest for your "free" air miles.
AYYY I'M THE 1000 LIKE
Asia Miles was pretty stingy with awarding miles.
I heard British Airways let many points expire even during the pandemic.
10:01 gtfo CNBC, make it quality not filler bs
Dalam kondisi cash strapped seperti saat ini Garuda harus belajar memaksimalkan keuntungan co-branding program dari airlines di Amerika
So much pressure on people to go into debt.
Delta and untied are the only 2 that are guaranteed not go bankrupt👍
isn't the answer the same to a nation's currency if the nation goes bankrupt?
People are always free to donate their miles to me
My airline miles have decreased in value like crazy not happy!
So just skip to 8:00....to the point.
People will still travel. This is temporary the demand will return. Airlines need to provide incentives or revolutionize the way we fly.
Oh well doesn't affect me; I have been using buses, trains, and cars for a while. I have a fear of flying and don't like the busy, stressful airport been a while since I have stepped foot on a plane or airport.
Anyone else distracted by the changing watermark at the top right of the video?
they ve been flying for decades and only after a few months break they go bankrupt? Talk about weak sauce.
I read somewhere that top airlines spent 97% of their free cash flow over the past decade on stock buybacks. Apparently, people should have enough money set aside to cover 3 to 6 months of expense, but those corporations that employ those people don't abide by the same rules. Yeah, ridiculous.
Thank god my miles are earned with the credit card so they can be applied to any airline, I have the capital one venture, the miles earned can be redeemed against any airline ticket🙏🏾🙏🏾🙏🏾
That's why I have miles only from "national" carriers..and.. JetBlue, ok now I'm curious
It goes without saying but... "Native Advertising"
everyday bussines knows you have too be prepared for hard times not live day by day. Big business crys wolf 1 day closed. Lets them die.
They disappear. Thee end. If you're in another country. Figure your way home. Which means you're screwed.
There are many fools such as Flyertalk posters buying gift cards on their airline credit cards because the rewards are much better than cashback cards. Right now there are folks with over a million miles from credit card manufactured spend. Good luck trying to spend down the millions of frequent flyer miles vs. cold hard cash even with no airline bankruptcy.
These extra bonuses sound like the farts of a dead man.
People's desire for status drives loyalty to certain airlines. I've got coworkers who will take a flight with a layover versus a direct option because they have status with the airline operating the layover option. I'm using Google Flights to find the cheapest option available...status be darned. To summarize: nothing is free and you shouldn't be surprised if these perks disappear when airline demand is down 90%. 1st world problems indeed.
9:55 random saying invest in you ready set go
Airline miles = Monopoly money
You get a good job sticker and a slap on the ass. You feel me... gleeee 🌚🌚
CNBC, that's the best thing you found to do a Doku about?
Country on fire and you wanna talk about airplane miles?
Sad
I’ve got 98k points in my capital one card. Guess I’m going to have to wait
Your miles will be transferred to Cruise 🚢 Ship lines.
I think we know already ..
Narrator needs to bump it down a notch or two.
You lose them
I too have experienced the same with jet airways
LOl they have to fly frequent on another airline.
*Thepointsguy has entered the chat.
Oh that's not good having a strand of covid-19 named Delta is probably not going to help Delta Airlines says a stupid friend of mine.
10 minutes and 1 second video stretched from a 1 minute answer
I legit have what to me is the most miles ever in my life and was excited about a business class upgrade. Sigh.
I am sorry you are poor.
Pray for the mileage industry =/
Claim those miles at least once a year.
Wow the narator voice is full of noise