Welcome To The New Error Of Etihad Guest

Etihad Airways has been one of the favourite airlines of Pointrs over the years. With their shiny black Audi chauffeur service, attentive staff, interesting meals and outstanding business class and first class, what’s not to like? And that’s not to mention the best suite in the sky, their three-room Residence.

With the ability to transfer points from American Express Membership Rewards to Etihad Airways Etihad Guest, Etihad Airways loyalty program, it made Etihad Airways even more attractive. With the recent devaluing of transfers from American Express Membership Rewards to Emirates Skywards, Etihad Airways, along with Qatar Airways, seemed to be in box seat to take advantage of those wanting to fly to the Middle East and beyond, at Emirates expense.

But not so fast.

It’s fair to say that Etihad Airways has struggled somewhat since Covid and even more so the Etihad Airways Etihad Guest program. As a consequence, last March Etihad Guest majorly revised the miles required for reward flights on Etihad Airways and partner airlines. And by revised, we mean devalued.

Well, just when you thought it was safe to go back in the water …

Etihad Airways has just announced another raft of changes. Raft is the appropriate word because if you do go back in the water you’re going to need a raft, a life raft, to be rescued from this sinking ship, err, plane. They are calling these changes “the new era of Etihad Guest”. We’re calling them “the new error of Etihad Guest”.

Less than one year after making major revisions, Etihad Guest has one again revised the miles required for reward flights on Etihad Airways and partner airlines. And while there are some positive changes, generally miles revisions only mean one thing.

Fortunately, Pointrs subscribers don’t need to know or worry about these changes. We’ve already updated our Spend Less Pointrs to ensure you continue to pay the fewest number of points and miles for your flights.

However, there are a couple of changes that everyone needs to worry about. In our opinion, these changes make Etihad Guest virtually unusable. They are a new miles expiry policy and a new booking cancellation policy.

Etihad Guest New Miles Expiry Policy

As per Pointr #6807, currently all your Etihad Airways Etihad Guest miles expire 18 months after your last eligible miles transaction, which can include earning, spending or buying miles, unless a Platinum member in which case they never expire. So, currently it is very easy to prevent your Etihad Guest miles from expiring.

From June 2024 all your Etihad Airways Etihad Guest miles expire 18 months after your last flight with Etihad Airways or their partner airlines, unless a Platinum member in which case they never expire. In other words, fly Etihad Airways or their partner airlines every 18 months or lose all your Etihad Guest miles.

By way of contrast, these are the expiry policies of other major loyalty programs:

Qantas Frequent Flyer (Pointr #6795)

All your Qantas Frequent Flyer Qantas Points expire 18 months after you last earned or spent Qantas Points with Qantas or their program partners, excluding earning by transferring points by Family Transfer or from Qantas Business Rewards.

Virgin Australia Velocity Frequent Flyer (Pointr #6808)

All your Virgin Australia Velocity Frequent Flyer Velocity Points expire 24 months after you last earned or spent Velocity Points, excluding earning by transferring points by Family Points Transfer or from a Family Pool, but including buying points.

Singapore Airlines KrisFlyer (Pointr #6801)

Singapore Airlines KrisFlyer miles expire 36 months after the end of the month in which they were earned, unless a PPS Club or Solitaire PPS Club member in which case they never expire.

Cathay Pacific Cathay (Pointr #6793)

All your Cathay Pacific Cathay Asia Miles expire 18 months after you last earned or spent Asia Miles.

For these major airline loyalty programs, and most others, it is fairly easy to prevent your points and miles from expiring.

With Etihad Guest’s new expiry policy, not so much. In fact, we would argue the opposite. How often do you fly Etihad Airways or their partner airlines? At least once every 18 months? We didn’t think so. Well, be prepared for your Etihad Guest points to expire before you get to use them.

How about this scenario? You see a reward flight on Etihad Guest that you’d like to book. You transfer your American Express Membership Reward points to Etihad Airways Etihad Guest. By the time your Etihad Guest miles arrive that reward flight is no longer available. You now have 18 months to find another suitable reward flight or all those points you just transferred will expire. Would you take that risk? We certainly wouldn’t.

Etihad Guest New Booking Cancellation Policy

But wait, there’s more.

Etihad Guest miles bookings made up to February 21 2024 can be cancelled for a cancellation fee of 10% of the miles fare. More severe than most airline loyalty programs, but still fairly palatable.

For Etihad Guest miles bookings made after February 21 2024, the following rules apply when cancelling that booking:

• If you cancel more than 21 days before departure you will be charged 25% of the miles fare.

• If you cancel 8-21 days before departure you will be charged 50% of the miles fare.

• If you cancel 2-7 days before departure you will be charged 75% of the miles fare.

• If you cancel 1 day or less before departure you will be charged 100% of the miles fare.

By way of comparison, most airline loyalty programs allow you to cancel until just before departure, for generally a modest fee of points, miles or cash. This ability to cancel at virtually any time for little fee makes booking award/reward seats with points and miles even more appealing and provides the flexibility needed when trying to find and book suitable award/reward seats.

Here’s an example of how this new cancellation policy will play out.

If you use Etihad Guest miles to book a return business class flight with Etihad Airways from Sydney to Paris for 380,000 miles (an oft seen fare) and you need to cancel that booking for any reason, the following cancellation fees will apply:

• If you cancel more than 21 days before departure – 95,000 miles.

• If you cancel 8-21 days before departure – 190,000 miles.

• If you cancel 2-7 days before departure – 285,000 miles.

• If you cancel 1 day or less before departure – 380,000 miles.

By way of contrast, these are the cancellation fees if you make a similar booking, or for that matter any booking, using other major airline loyalty programs:

Qantas Frequent Flyer

• If you cancel within 24hrs of making an eligible flight booking – no fee.

• If you cancel before departure – 6,000 points.

Virgin Australia Velocity Frequent Flyer

• If you cancel before departure – AUD 35 or 4,500 points (Virgin Australia domestic bookings), AUD 60 or 7,500 points (all other bookings).

Singapore Airlines KrisFlyer

• If you cancel before departure – USD 50 or USD 75.

Cathay Pacific Cathay

• If you cancel within 24hrs of making a booking online with Cathay Pacific – no fee. 

• If you cancel before departure – USD 120 or 17,000 miles.

With all airlines, if you cancel within 24hrs of making a booking to, from or via the United States, that is made at least 7 days prior to departure there is no cancellation fee.

As you can see, there is a very significant difference in fees.

So, why would you book a flight using Etihad Guest miles knowing you will be risking 25%-100% of your miles? You would certainly want to be very certain you were not going to cancel your booking, but how can anyone be that certain?

Fly Etihad Airways Using Points/Miles Of Other Airline Loyalty Programs

Fortunately, if you want to fly Etihad Airways but don’t want to risk using Etihad Guest, you can use other airline loyalty programs. When using these loyalty programs, the expiry policies of those programs apply along with their cancellation policies and fees.

As Pointr #1070 shows, you can use the points/miles of the following airline loyalty programs to fly Etihad Airways:

• Virgin Australia Velocity Frequent Flyer

• Malaysia Airlines Enrich

• Air France-KLM Flying Blue

• Air Canada Aeroplan

• ANA Mileage Club

Unfortunately, it appears that Etihad Airways is currently not making their Business and First Class award/reward flights available on these airline loyalty programs until 30 days or less from departure. This seems to be a new policy. How long this policy lasts is anyone’s guess, but hopefully it is just short-term. Meanwhile, it is just another nail in the coffin for Etihad Airways.