Selling Airline Miles: Navigating the Rules and Risks

Ah, airline miles—the currency of the sky. People are obsessive about collecting them, and who can blame them with what treasures they can unlock, from lavish getaways to posh first-class experiences. To me, airline miles are gold dust, and I meticulously calculate their value like a stockbroker on Wall Street.

But hold your boarding passes! The thing about miles is, unlike Bitcoin or Dogecoin, trading them isn’t exactly cricket according to the rulebooks. So let’s dig into why trading miles—though frequent—skates along the thin ice of unfamiliar legality and program violations.

Selling Miles Isn’t Illegal, Just a Rule-Breaker

Disclaimer: I’m no legal eagle, just a loyal program enthusiast. Generally speaking:

• Selling airline miles doesn’t break any laws—officially, anyway.
• Swapping those miles almost always breaks the terms of loyalty programs, which you click ‘I Agree’ to when you join.

Take a peek at American Airlines’ AAdvantage rules, just for kicks:

You can’t trade, sell, or offer your AAdvantage® points like baseball cards at a yard sale. If you do, not only might you lose those miles, but you could end up in legal hot water, with legal fees spitting steam out your ears as American Airlines enforces this rule.

Important points to highlight here:

• Buying and selling miles isn’t the only no-no. Any form of bartering (be it for businesses or charities) grates against the rules.
• If you ignore this and get caught, you’re not just in danger of a locked account; say hello to potential fines and legal battles.
• Remember, those miles? They’re actually owned by the airline. They can close your account just because they feel like it. Let that sink in while you sip your in-flight cocktail.

Surprising, eh? Well, there’s a silver—or rather duty-free—lining! At least in the US, you won’t find yourself tangled in the taxman’s net over them.

How Risky Is It to Sell Your Miles?

So that’s the spiel on rules. How often are they actually enforced? Personally, I’m not daft enough to trade in miles; I savor them too much. Plus, gifting them to family is my way of saying “I love you.” But hey, if selling miles to internet strangers is your gig, brace yourself. Airlines have become hawk-eyed in monitoring account activity. They often even post fake ads online to catch reckless traders red-handed. Risky business, indeed.

There are lower-risk violations though. Say you book a flight for your sister and she repays you in dinners—good luck to airlines “proving” that barter. Still breaks the rules, but catch me if you can, right? Nonetheless, remember overzealous airlines may flag innocent accounts, leading to frantic head-scratching even if you’ve done nothing wrong.

Ways to Legitimately Barter Miles—Sort Of

Want to stay on the sunny side of rules? While airlines let you transfer miles for a fee, it’s usually a bad deal unless you need to grab just a few more to clinch an award ticket. Fancy splitting points in loyalty programs? It’s a safer bet. But compensating someone in any form for transferring those miles? Still illegal in the rule book.

Some programs might let you exchange your miles into other rewards, often facilitated by third-party companies. Though honestly, that’s like trading fine wine for boxed juice—not great.

Strategic Points Hoarding Tips

Find yourself chucking mileage in desperation? Consider these tips, o frequent flyer:

• Don’t earn miles on credit cards—opt for cash back or transferable points for more wiggle room.
• Troubled by expiring miles? Sometimes a small purchase via an airline’s shopping portal revives them.
• Earn miles by flying? Pick which airline you credit them to wisely. You can credit your journey to a partner airline’s program for greater benefits.
• Absolute dead end? Redeem those miles for merchandise. Better than nada if you’re desperate, but don’t expect luxury retail treatment.

The Bottom Line

While not legally chained, selling airline miles wraps you in cords of contractual red tape. It’s an industry secret without a secret handshake. Airlines keep sharpening their fangs at notorious accounts, and sometimes they nosedive straight into wrong assumptions. I wouldn’t gamble my miles this way—too risky for my liking. You?