CEO Blog

Written by Ravindra Bhagwanani on . Posted in News

Not a lot of mainline airlines do a full revenue-based redemption since this puts award pricing out of control for the loyalty departments. Turkish Airlines is no exception to that rule, but they have a small revenue component in their Miles&Smiles award offering: When redeeming award tickets on Turkish Airlines, you can opt to pay an additional mileage amount to cover taxes and fees of 100 Turkish Lira. When this offer was introduced, the price to do so was 4,000 miles. But they now face another issue. While the Turkish Lira traded below 4 for 1 USD five years ago, the currency is now devaluated and worth just below 19 for 1 USD. As such, Miles&Smiles could “improve” its award offering by cutting the award amount for 100 TRY to 1,000 miles. But don’t get excited too quickly and do the maths as this still represents a value per mile of a bit more than half a US cent only.