U.S Airways toughens Dividend Miles accrual

Beginning May 1, 2008, U.S. Airways will change the company's Dividend Miles program to award the actual number of miles flown rather than a minimum number of miles flown for each segment. The airline said the changes are necessary to offset record fuel prices and rising airline-related expenses.

The present policy of the Dividend Program, and many other airline programs, allows members to receive a minimum 500 miles for each flight segment flown, a benefit for those who travel on short-haul flights under 500 miles in distance. With the changes, passengers will earn only what they fly.

Consider a flight from San Francisco to Los Angeles: 337 flight miles rounds up and presently would earn you 500 miles. But, come May 1st you earn just 337 miles. For business travelers who frequent these short distance flights, the shrinkage in miles will definitely be felt.

Here's how the policy will be rolled out:
Accrual Tickets purchased on/after March 1, 2008, for travel on US Airways on/after May 1, 2008 will earn the actual number of miles flown and will no longer earn a minimum of 500 miles per segment. Tickets flown on partner airlines after May 1, 2008, will earn the actual number of miles flown. Tickets purchased prior to March 1, 2008, will continue to earn the 500-mile minimum for travel after May 1, 2008. Accrual on flight segments greater than 500 miles in length are not impacted by this change.