Luftscamsa - Lufthansa Group to Devalue Miles & More Through Dynamic Pricing Shift

Lufthansa Group announced a fundamental restructuring of its Miles & More loyalty program. The changes involve a transition to dynamic pricing for award flights starting on June 3, 2025. The airline will abandon its fixed award chart for flights operated by Lufthansa, SWISS and Austrian Airlines. This shift effectively removes the predictability of the program for its millions of members. Starting on the transition date, mileage costs will fluctuate based on commercial fares. This system ensures that when cash prices increase, the required mileage balance for a seat will rise accordingly. Management confirmed the termination of the popular monthly "Mileage Bargains" program. These discounted awards have been a staple of the Miles & More experience for several years and provided the highest value for participants. While partner airlines will still operate on a fixed chart, those rates are scheduled for an immediate increase. A business class ticket between the United States and Europe will rise to 62,500 miles. First class redemptions on partner carriers will see a sharper jump to 107,500 miles. These increases represent a significant inflation of the cost of travel for loyal customers. The new dynamic pricing model for economy awards will utilize the restrictive "Light" fare class. This classification often excludes standard benefits such as seat selection and baggage allowance. Industry observers said the change may even affect frequent flyers with elite status. There are indications that these travelers might lose traditional perks when booking the lowest tier of award flights. The airline said the move is intended to modernize the program and offer more redemption options. A spokesperson noted that the revenue-based model is becoming the standard for international aviation groups. Consumer advocates have expressed concern regarding the lack of a price ceiling. Without fixed charts, the airline can theoretically charge an unlimited number of miles for high-demand flights. The devaluation is expected to be most severe on long-haul routes to Asia. Lufthansa acknowledged that these redemptions will require significantly more miles in the future. This restructuring allows the company to reduce the financial liability of outstanding mileage balances. By linking miles to cash prices, the airline protects its margins during peak travel seasons. The Miles & More program currently serves over 36 million members globally. Many of these individuals have accumulated balances based on the promise of predictable award pricing. The program also contains several hidden limitations that differentiate it from more transparent competitors. Status holders within the group, particularly those holding Gold status via Air Dolomiti, frequently face service restrictions that are not encountered by members of other Star Alliance carriers. Management has also curtailed lounge benefits by imposing strict limitations on guests permitted to accompany status holders. These policies are notably more rigid than those of rival airline alliances, which typically offer more flexible access for family members. Legal precedent has largely upheld the right of carriers to modify loyalty programs unilaterally. Courts have historically viewed miles not as personal property but as revocable promotional instruments, leaving consumers with limited protection against sudden devaluations. Passengers are encouraged to redeem their current balances before the June deadline. After the transition, the purchasing power of each mile is expected to decline significantly. The move reinforces the perception that Lufthansa prioritizes corporate revenue over the long-term trust of its most frequent travelers.