Many of the most popular travel credit cards offer benefits and rewards that make their annual fees worth it, and premium cards from American Express even offer annual credits that can help directly reimburse you for spending.
In particular, the Amex airfare rebate allows frequent travelers to save money when flying with certain airlines, and we’ve got all the details on how this credit works so you can make the most of it each year.
What is an Amex Airfare Credit?
The Amex Airfare Credit is a perk offered by some American Express credit cards. This includes:
The fee credit is valid for one eligible airline selected by you. If you are a new cardholder or an existing cardholder who has never previously selected an airline, you may select it at any time, but once selected, you may only change your selection until January 31st of each year.
To select an airline, simply log into your Amex account online or call the customer service number on the back of your card. Once selected, any time you use that credit card to pay for “travel expenses,” you’ll automatically be credited up to the allocated amount.
Amex will automatically apply the credit to your statement within 6-8 weeks after the qualifying charge is posted to your account, and the qualifying purchase can be in any amount, which means you don’t have to use the credit in full at once.
Choose the airline that’s right for you
The first step to getting the most out of your Amex airfare credits is to choose your airline strategically. Although you can change your selected airline each January, you can’t change your preferred airline mid-year if your travel plans change.
Luckily, there are plenty of popular airlines to choose from.
- Alaska Airlines
- American Airlines
- Delta Airlines
- Hawaiian Airlines
- JetBlue
- Spirit Airlines
- Southwest Airlines
- United Airlines
Don’t assume that your most frequently flown airline is the best choice for this credit. Airlines on which you already have status or ancillary credits may not allow you to use the ancillary credit. Instead, consider choosing an airline that you fly only occasionally, but not often enough to fully use your available credits.
For example, if you’ve earned AAdvantage Platinum Pro status with American Airlines through your annual travels, which entitles you to three free checked bags every time you fly, you could choose Delta as your Amex fare credit airline and use that credit to cover checked baggage fees on several flights with Delta each year.
What qualifies for an airfare credit?
According to the terms and conditions of this offer, the Amex airfare credit is good for “incidental expenses, such as checked baggage and in-flight food and beverages.” In other words, the airfare credit can be used to cover costs you may incur during the flight, but not the main portion of the airfare itself.
According to the fine print, the credit applies to both payments you make yourself and any cardholders you add to your account, but the $200 limit applies to all eligible spending on your card combined, and doesn’t include fees not directly charged by the airline, like in-flight WiFi or fees from airline alliance partners.
It’s important to note that American Express clearly outlines all purchases you can’t use this credit for: According to the card issuer, “Airfares, upgrades, frequent flyer point purchases, frequent flyer point transfer fees, gift cards, duty-free purchases and award tickets are not considered incidental expenses.”
However, airfare credits can be used:
Checked baggage
Many airlines charge $30 or more per checked bag, and you can use airline fare credits to cover these fees.
In-flight entertainment
Movies, tablet rental fees and other in-flight entertainment options qualify for this credit, although in-flight internet access may not qualify if it’s handled by a third party rather than the airline.
Seat selection
If you’ve paid for seat selection, you may be eligible for the credit, but you must pay for the seat selection separately from reserving your ticket. Any fees incurred when purchasing your ticket are not eligible for the credit, so if you want to use the credit for that expense, please book your ticket first and then modify your seat selection reservation.
Pet Fees
Any time you fly with your dog, you can use your Amex airfare credit towards the pet fee.
Priority boarding
If you don’t have an airline credit card that offers Priority Boarding as a cardmember benefit, it’s a good idea to use your Amex fare credit for this purpose. This is especially true if you choose Southwest Airlines for your fare credit and frequently pay for EarlyBird Check-In. Just make sure you book your ticket in a separate transaction from purchasing Priority Boarding.
Telephone reservation fee
In the rare event that you are unable to book your ticket online, you may be able to cover the airline’s telephone booking fees with an airline credit.
How to best use airline incidental charge credits
While the above options are good, there are a few other ways you can use airline incidental expense credits to your advantage. Some of the most original and advantageous options include:
Airport Lounge Access
If you pay with your chosen airline, you can use your Amex airline fee credit to pay for individual lounge fees or annual membership fees. For example, if you choose American Airlines, you can use your airline fee credit to pay for Admirals Club fees and membership fees.
Change Fee
While some airlines have eliminated change fees, many still charge change fees when you purchase a nonrefundable ticket. If you need to change your flight, these fees can easily add up to $150 or more. When you change your flight with your chosen airline with an Amex Airfare Credit, all or part of the fee will be wiped from your credit card statement.
Whatever fits the bill! Don’t let it go to waste
The Amex airfare credit effectively cuts the cost of carrying these hefty annual fee cards, so don’t let it go to waste. Ideally, you’d use the credit strategically to offset expenses you’d have to pay anyway, rather than buying unnecessary in-flight meals and drinks to use up your credit. However, with the cost of checked bags and seat selection these days, it might not be hard to find a way to use the credit in full.
Conclusion
The American Express airfare credit can help you save on incidentals with your favorite airlines, but be sure to read the fine print: At the beginning of each year, American Express requires you to choose one airline to use the credit on, which makes the perk much less valuable than more flexible credits, such as the $300 annual travel credit offered by the Chase Sapphire Reserve®.
You can make the most of this credit by strategically choosing your airline and understanding which purchases apply. If you don’t plan on using your Amex airline fee credit throughout the year, you could be wasting $200 in value.
