Money Minute: United Airlines Changes Rewards Program

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United Airlines is changing the way it doles out frequent flier miles, and it may hurt many travelers.

How many reward miles you rack up at United (UAL) will no longer depend on the number of miles you fly, but on how much you spend for those flights. United Club members will get five miles for every dollar spent, and premier-level fliers will get 7 to 11 miles for each dollar spent. The change takes effect next March. Earlier this year, Delta Air Lines (DAL) made a similar change to its frequent flier plan. Some consumer finance experts say these changes reduce the value of frequent flier rewards for people who shop for travel bargains.

There were more jobs available in April than at any time in seven years. The Labor Department says job openings totaled 4.5 million, up from 4.2 million the month before. However, businesses aren't necessarily rushing to fill those openings. The number of people hired in April was little changed from March.

Of course, more jobs is good news for people who are out of work, but this isn't: House Democrats say more than 3 million Americans have stopped receiving unemployment benefits because the Republican led House refused to take up a bill to extend those payments. Last year, Congress cut the number of weeks that someone could receive jobless benefits to 73, and then at the end of 2013, the maximum dropped to 26 weeks. About 72,000 additional people lose their benefits each week. By the government count, there are 3.4 million people who have been out of work for more than 26 weeks. That is what's considered long-term unemployment.

Wall Street on Tuesday, the three major averages closed within 3 points of where they began the day. Still, the The Dow Jones industrial average (^DJI) eked out a fourth straight record high.

Finally, Amazon.com (AMZN) is reportedly preparing to launch a new operation focusing on local services. Reuters says it could help you locate plumbers, babysitters and other service providers in your neighborhood -- and present a major challenge to Angie's List (ANGI), Yelp (YELP) and others.

-Produced by Drew Trachtenberg.


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14 Comments

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ectullis

Don't believe this for one picosecond.

June 11 2014 at 3:31 PM Report abuse -1 rate up rate down Reply
Iselin007

People will have to stay in the work force longer because they have been out of a good job for so long.

June 11 2014 at 2:30 PM Report abuse +1 rate up rate down Reply
Iselin007

The longer this recovery takes the more damage is done.

June 11 2014 at 2:00 PM Report abuse +2 rate up rate down Reply
Iselin007

We attained annual average of 146,046,000 employed back in 2007 with about 15,775,000 less people in the non civilian population over age 16 compared to the figures released for May 2014. No way is the job market any where near this ratio today.

June 11 2014 at 1:47 PM Report abuse +2 rate up rate down Reply
Iselin007

Nothing much has changed.

June 11 2014 at 1:31 PM Report abuse rate up rate down Reply
tmlbtb

This is what happens when the competition has been put out of business. An anti trust should be filed against these airlines. The Sherman Act was created for this purpose.

June 11 2014 at 12:32 PM Report abuse +2 rate up rate down Reply
Valerie

Another phony baloney article that carefully avoids mentioning that the majority of these "new jobs" are for retail stock clerks, store cashiers, hotel maids, fast food employees, and other low-paid jobs. Worse yet, all of these jobs are for less than 40 hours a week, so companies don't have to pay any employee benefits.

Walmart is the nation's largest employer. Sometimes, I do wonder how many Walmart employees are living in their cars in the Walmart parking lot.

June 11 2014 at 12:29 PM Report abuse +2 rate up rate down Reply
1 reply to Valerie's comment
Iselin007

Things are not much better just more of the same dismal outlook.

June 11 2014 at 1:34 PM Report abuse +3 rate up rate down Reply
fitzregs

So, Delta & United have short sheeted, once again, the casual flyer. You search for the best round-trip fare between Denver & San Francisco. It may just be $400.00. The actual air miles round trip is 1932 miles. The bean counters remain alive & well.

June 11 2014 at 12:09 PM Report abuse +2 rate up rate down Reply
Larry

A continual erosion of quality to intelligent fliers that increased when Continental management was imposed after UAL bought them.

Combination of kicking the UAL front line employees to the curb and outdated systems and business model will further erode market share.

June 11 2014 at 11:41 AM Report abuse +2 rate up rate down Reply
Bill Ridenour

The labor participation rate, the true measure of how many employable Americans are actually holding down jobs, has dropped to 62.5% as of May 2014. This is the lowest it has been since 1978 during the Jimmy Carter Stagflation era which combined hyper inflatioon with a stagnant economy-a trivck only s democrat could pull off.

The same rate was was well over 65% at the time George Bush Jr. left office in 2008.

Furrthermore black unemployment is up to 12.8% versus a 10% rate at the tail end of the Bush era in 2008.

Underemployment is the new catchphrase as more people lall of the traditional unemployment statistics by taking part time jobs, which do not pay medical benefits, rathe rthan full time jobs which are in short supply.

The family household income rate has dropped more than 5% since the Bush Jr. era.

Six million Ameircans have also lost their private insurance coverage. My wife's coverage is now 26% higher than it was in 2012. This amounts to a 1,300 annual non tax deductible bite out of our household budget.

These and other issues are incontrovertible facts backed up by Federal Government statistics.

All of this has been under reported by a Liberal press that flatly refuses to critique this President for his complete disregard for jobs creation.

For those of you who voted for him.....you got exactly what you deserved.

June 11 2014 at 11:03 AM Report abuse -4 rate up rate down Reply
1 reply to Bill Ridenour's comment
glucash22

Your statistics are correct but you give no reasoning for them. You seem to stop your analysis the day that W departed. His administration statistics must continue for awhile like trying to stop a cruise ship by turning off the engines. it still takes miles to come to a halt. Compare these statistics to say 6 months after January 20, 2009 and you'll find all your reasoning completely false. Family household income has dropped. Whose fault is that? Try big business that hasn't given raises in years but still squeezes every last drop of productivity out of their employees using the fear of losing jobs. Six million losing health insurance. Pure crap. Not backed by any statistics except Fox Entertainment wet dreams. Participation in health insurance is currently higher than anytime in the past 15 years. That's a fact. Your insurance is up 13%. a year, welcome to free market businesses. I remember 20 years ago when a 13% yearly increase was a blessing and now you have better benefits than before and most people are paying less. I criticize this President plenty but not on job creation. Jobs can be created by this governement but those Bills must come from Congress. How many jobs Bills were proposed by republicans? How many had a repeal of the ACA attached? Every one. I'm not totally happy with this President but I am greatly relieved that we did not get the alternative.

June 11 2014 at 2:43 PM Report abuse +4 rate up rate down Reply