Why would an airline want customers to pay partly in cash?

Miles represent a liability on the airline's balance sheet until they are redeemed, and partial redemptions reduce that outstanding balance while bringing in cash revenue at the same time. The arrangement can also help the carrier sell seats that might otherwise go unsold. Loyalty programs are already a significant source of revenue for major carriers, largely through co-branded credit card partnerships.

Are regulators looking at airline rewards programs?

Yes. The U.S. Department of Transportation launched an inquiry in 2023 into the loyalty programs of major U.S. airlines, seeking details on point valuation, how program changes are disclosed to members, and whether any practices could be considered unfair or deceptive. Airlines have responded by defending their programs while continuing to revise earning and redemption rules. New payment features are likely to be viewed against that same standard of transparency.

Where can travelers find the conversion rate for a mixed payment?

The rate is typically determined by the airline and disclosed in the terms of its loyalty program rather than prominently advertised at checkout. The amount of cash required for a given number of miles can also change based on the itinerary and fare selected. Reading the program terms alongside the booking screen is the most reliable way to see what a specific redemption involves.

American Airlines Lets Travelers Combine Cash and Miles for Tickets

American Airlines has begun allowing customers to pay for tickets with a mix of cash and frequent flyer miles, joining other U.S. carriers that already offer combination bookings. The option adds flexibility at checkout but leaves members to weigh how much their miles are worth in each transaction.

Disclaimer: News content is based on public news sources and provided for information only. It does not constitute investment advice.

American Airlines Lets Travelers Combine Cash and Miles for Tickets

CNBC·10/2/2026, 15:00:01· general

American Joins the Cash-Plus-Miles Group

American Airlines is introducing a booking option that lets customers combine cash and frequent flyer miles when buying a ticket, CNBC reported. The feature means travelers are no longer restricted to choosing one payment method over the other at the point of sale. American is not the first carrier to take this step — several other U.S. airlines already allow customers to blend cash with loyalty currency. The change brings American's checkout process closer to a practice that has become more common across the industry.

Why Airlines Are Adopting Mixed Payments

Airline loyalty programs have grown into a major commercial engine, largely through partnerships with credit card issuers that purchase miles in bulk. Those programs also create an obligation: miles belong to members until they are redeemed, and unredeemed balances sit on the airline's books. Allowing a partial cash payment lets a carrier collect revenue on a seat while drawing down some of that outstanding mileage balance at the same time. It can also help sell inventory that might otherwise depart with empty seats. For members, the trade-off is added flexibility at checkout against the value they receive per mile.

How Combination Bookings Tend to Be Priced

Specifics vary by airline, but combination bookings generally work through a slider or a set of preset splits presented at checkout. The rate at which cash substitutes for miles is set by the carrier and often differs from the value a traveler would obtain through a full award redemption. Because redemption values shift across itineraries, travel dates and cabin classes, the same block of miles can be worth noticeably more or less depending on how it is applied. That variability is one reason loyalty program terms are difficult to compare directly from one airline to another.

Regulatory Scrutiny of Loyalty Programs

The move comes amid sustained attention to how airline rewards programs operate. The U.S. Department of Transportation opened an inquiry into major carriers' loyalty programs in 2023, requesting information on how points are valued, how program changes are communicated to members, and whether any practices are unfair or deceptive. Airlines have defended their programs while continuing to adjust how miles are earned and spent. Any expansion of payment options is likely to be assessed through the same transparency lens applied to program terms and redemption rules.

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Frequently asked questions

What exactly is American Airlines offering with this change?▾

American Airlines now allows customers to book a ticket using a combination of cash and frequent flyer miles rather than choosing one or the other. The option is presented during the booking process, where travelers select how much of the fare to cover with miles and how much to pay in cash. It mirrors features already available at several competing U.S. carriers.

Which other airlines already let customers mix cash and miles?▾

American is joining a group of carriers that have offered similar combination payment features in recent years, rather than pioneering the idea. The exact mechanics differ between airlines, including how the split is presented and what rate is applied when miles are converted. Because those terms vary, the same mileage balance can produce different outcomes depending on the carrier and itinerary.

Does mixing cash and miles deliver the same value as a full award ticket?▾

Often it does not, because combination bookings are priced at a conversion rate set by the airline, which may be less favorable than the value obtained through a standard award redemption. The gap widens or narrows depending on the route, travel dates and cabin class involved. Members comparing options generally need to look at both the cash amount and the miles required, rather than the miles alone.

Key takeaways

American Joins the Cash-Plus-Miles Group

Why Airlines Are Adopting Mixed Payments

How Combination Bookings Tend to Be Priced

Regulatory Scrutiny of Loyalty Programs

What Changes for Travelers

Common mistakes to avoid

Reacting to a single headline without reading the full context — one data point is rarely the whole story.
Treating rewritten news as a signal — it describes what happened, never what to do next.
Confusing AI-rewritten content with the original source — always verify important facts against the primary report.

American Airlines Lets Travelers Combine Cash and Miles for Tickets

American Joins the Cash-Plus-Miles Group

Why Airlines Are Adopting Mixed Payments

How Combination Bookings Tend to Be Priced

Regulatory Scrutiny of Loyalty Programs

Frequently asked questions

Key takeaways

Common mistakes to avoid

Related reading

American Joins the Cash-Plus-Miles Group

Why Airlines Are Adopting Mixed Payments

How Combination Bookings Tend to Be Priced

Regulatory Scrutiny of Loyalty Programs

Frequently asked questions

Key takeaways

Common mistakes to avoid

Related reading

What Changes for Travelers