What is Air Miles?


Purpose	To incentivize customer loyalty. Travelers are encouraged to choose a specific airline or alliance (like Star Alliance) repeatedly to accrue miles, which can then be redeemed for rewards.
Redemption value	Miles can be redeemed for free flights (often requiring paying taxes and fees), seat upgrades, hotel stays, car rentals, or merchandise. The value (cents per mile) is highly variable.
Earning methods	1. Flying: Based on distance flown, fare class purchased, or money spent. 2. Credit cards: Spending on airline co-branded credit cards (often the fastest way to earn). 3. Partners: Spending with associated hotel chains, rental car agencies, or retail partners.
Value note	Miles are a liability on an airline's balance sheet. Airlines often devalue miles (requiring more miles for the same flight) to manage this liability and increase revenue.

What Are Air Miles?

Air miles are reward points you earn through airline loyalty programs for flying or spending with partner brands and cards.

This matters because air miles can cut travel costs and improve the travel experience. For example, a sales rep who flies often on one airline may collect enough miles for a free flight, business class upgrade, or lounge access.

In business travel and expense management, air miles influence which airlines employees choose, how loyal they are to certain carriers, and the overall value you get from your travel spend. Companies try to balance traveler preferences for miles with their own goals around cost, policy, and preferred suppliers.

How Do Air Miles Work?

Air miles are the currency of airline frequent flyer programs. When you join a program, you receive a member number and start earning miles whenever you fly, stay with partner hotels, rent cars, shop with participating retailers, or use co-branded credit cards. Some programs award miles based on distance and fare class, while others use the price of the ticket. Card spend and partner activity add to your balance even when you are not flying.

You redeem those miles for value. The most common redemptions are award tickets and seat upgrades, but many programs also let you use miles for bags, seat selection, lounge passes, hotel stays, gift cards, or merchandise. The value you receive varies by route, cabin, and program rules, so it pays to compare the miles required against the cash price.

Most programs track two parallel things:

Redeemable miles are the balance you can spend on awards.
Status credits, often called qualifying miles, points, or segments, determine your elite tier and unlock benefits such as priority boarding, free checked bags, better seats, and dedicated support.

The two are related but not identical. A flight can earn strong status credit while generating fewer redeemable miles, or vice versa, depending on fare and program rules.

Airlines extend these benefits through alliances and partnerships. Major alliances like Star Alliance, oneworld, and SkyTeam, plus many bilateral partnerships, allow you to earn and redeem across multiple carriers. That means you can fly Airline C but credit the flight to Airline B if they are partners. Bank and card partners also let you transfer points into airline programs, which adds flexibility when you are building toward an award.

In corporate travel, air miles influence behavior and budgets. Employees often prefer carriers where they hold status, while companies negotiate corporate deals that may include mileage bonuses or better change policies.

Travel managers need to balance cost control with traveler satisfaction. Platforms such as Navan help by showing policy-compliant options first, allowing travelers to store loyalty numbers in their profiles, and reporting on spend and savings. The result is a program where travelers continue to earn and use miles while the company maintains visibility and keeps costs in check.

Why Do Air Miles Matter?

Companies and travelers that use air miles strategically can lower travel costs and improve traveler satisfaction.

Here's why:

Travelers Lower Their Net Travel Costs

Miles redeemed for flights or upgrades reduce what you pay in cash, especially for long‑haul or premium‑cabin trips.

Travelers Feel Greater Satisfaction and Airlines Profit From Retention

Frequent flyers value their status and miles. Supporting reasonable loyalty preferences can make heavy travelers feel recognized and supported.

Companies Gain Better Supplier Relationships

High volumes on certain airlines can support better corporate deals, including bonus mileage or status benefits for key travelers.

Travelers Have More Flexibility in Tight Budgets

During budget pressure, miles can help cover critical trips or upgrades where cash budgets would say no.

Companies Gain Valuable Data and Insight Into Travel Patterns

Loyalty data, combined with booking data from platforms like Navan, helps you see which airlines your travelers really use and where to focus negotiations.

How Do Air Miles Work in Practice?

Sign up on the airline’s website and get your member number.
Add your number to bookings
Enter it in your travel profile, booking tool (like Navan Travel), or directly with the airline.
Fly or spend with partners
Each eligible flight or partner purchase earns miles, visible in your online account.
Watch for bonuses
Promotions, status tiers, or corporate deals may multiply miles on certain routes or fares.
Redeem wisely
Use miles where they give the most value: often long‑haul flights, off‑peak travel, or upgrades from mid‑level fares.
Manage expiration
Some programs let miles expire after a period of no activity; simple actions like small partner purchases can reset the clock.

Discover Air Miles in Action

Scenario 1: Frequent Business Traveler
A consultant frequently flies between New York and London on Airline A, and their loyalty number is saved in their Navan profile, so every booking earns miles automatically. Over the course of a year, they accrue enough miles for a free personal trip or to upgrade to business class on an important client visit. The company benefits as well because the consultant is happy to continue flying the preferred carrier under the negotiated deal.

Scenario 1: Frequent Business Traveler

A consultant frequently flies between New York and London on Airline A, and their loyalty number is saved in their Navan profile, so every booking earns miles automatically. Over the course of a year, they accrue enough miles for a free personal trip or to upgrade to business class on an important client visit. The company benefits as well because the consultant is happy to continue flying the preferred carrier under the negotiated deal.

Scenario 2: Company‑Leveraged Miles
A small business owner uses a co-branded airline corporate card to pay for flights booked through Navan. Each booking earns miles from the airline, and the card accrues additional points. The owner redeems the accumulated miles for future business trips, reducing cash outlay and improving budget efficiency. Policy and spend controls remain in place because all activity runs through the company’s travel and expense platform, which enforces approvals and budget limits.

Scenario 2: Company‑Leveraged Miles

A small business owner uses a co-branded airline corporate card to pay for flights booked through Navan. Each booking earns miles from the airline, and the card accrues additional points. The owner redeems the accumulated miles for future business trips, reducing cash outlay and improving budget efficiency. Policy and spend controls remain in place because all activity runs through the company’s travel and expense platform, which enforces approvals and budget limits.

Scenario 3: Alliance Use Case
A traveler is loyal to Airline B but needs to fly Airline C for a specific route. Because Airlines B and C are in the same alliance, the traveler enters their Airline B frequent flyer number during booking. The flight then credits to the Airline B account, allowing the traveler to earn miles and, depending on fare class and partner accrual rules, status credit with Airline B even though they flew on Airline C.

Scenario 3: Alliance Use Case

A traveler is loyal to Airline B but needs to fly Airline C for a specific route. Because Airlines B and C are in the same alliance, the traveler enters their Airline B frequent flyer number during booking. The flight then credits to the Airline B account, allowing the traveler to earn miles and, depending on fare class and partner accrual rules, status credit with Airline B even though they flew on Airline C.

Airline Loyalty in Corporate Travel: Common Challenges and Practical fixes

Align traveler preferences with cost control using clear policies, smart tooling, and simple nudges.

Challenge 1: Travelers Pick Pricier Flights For Miles

Set guardrails: allow preferred airlines up to $X or Y% above the lowest logical fare.
Default search to best value options and require justification for out-of-policy picks.
Educate with examples that show the real value of miles vs added cost.

Challenge 2: Confusion Over Who Owns the Miles

State the policy plainly: employees keep personal miles, while the company earns business rewards where available.
Communicate at onboarding, in the travel policy, and in the booking flow.
Explain how company rewards fund future savings or traveler benefits.

Challenge 3: Miles Expire Unused

Encourage consolidation with 1-2 primary alliances.
Share easy keep-alive tactics: partner purchases, shopping portals, dining programs, or card-linked activity.
Send periodic reminders to frequent travelers to review balances and expirations.

Challenge 4: Managing Multiple Programs Is Complex

Store all loyalty numbers in traveler profiles within your booking platform.
Recommend 1-2 primary alliances by region or route pattern.
Provide a quick guide to earning charts, status matches, and soft landings.

Challenge 5: Misalignment With Corporate Deals

Prioritize preferred, in-policy carriers in search results; flag or hide noncompliant options.
Negotiate with airlines employees already favor, backed by your volume and share-of-wallet data.
Review performance annually and adjust the preferred list using savings, coverage, and on-time metrics.

Comparison metric	Airmiles (redeemable miles)	Credit Card Points	Status/Tier Points	Revenue discounts
Core Function	Spendable currency for flights and upgrades	Flexible currency for transfer or cash back	Elite Status counter for loyalty tier levels	Direct reduction in the ticket price
Source/Issuer	Airline loyalty program	Bank or card issuer	Airline loyalty program	Airline/Corporate Negotiation
Primary Restriction	Limited to the issuing airline or alliance partners	Typically more flexible; can transfer to multiple programs	Must be earned annually; cannot be spent	Limited by contract terms, promotion dates, or inventory
Benefit to Traveler	Free or upgraded travel	Versatile reward options; maximized value via transfers	Priority perks (boarding, luggage, lounge access)	Immediate cost saving on the purchase
Financial View (Company)	Non-cash perk; harder to model for immediate savings	Outside the corporate program (often personal)	Encourages in-policy booking for the employee	Clear, measurable cost savings

Understanding air miles is easier when you know these related terms:

Frequent flyer program (FFP): An airline’s loyalty program where you earn and redeem air miles and status points. Each major airline runs at least one.
Elite status: Tier levels (Silver, Gold, Platinum, etc.) in an FFP that unlock perks like priority boarding, lounge access, and upgrades. Earned via status points, segments, or spend.
Alliance: A group of partner airlines that share routes and benefits (for example, Star Alliance, oneworld, SkyTeam). Air miles often work across alliance members.
Co‑branded credit card: A card issued with a specific airline. Spend earns that airline’s miles directly and often comes with travel perks like free bags.
Corporate contract / preferred carrier: Agreements between a company and an airline that set special fares and conditions. Real traveler behavior, including loyalty trends, shapes these deals.
Award chart / dynamic pricing: The rules or system that decide how many miles a flight costs. Some airlines use fixed charts; others change prices dynamically.
Travel policy: Your company’s rules for how employees book and travel. It should explain how to balance loyalty (miles) with cost, flexibility, and safety.