Are Airline Credit Cards Worth It?

livemint.com:

Airline credit-card pitches are inescapable, from the mailings stuffing your mailbox to the hard sells as you await takeoff. Are the attractive offers worth your money? The perks of credit cards tied to a single airline include hefty sign-up bonuses, free checked bags and access to airport lounges. These benefits can often pay for themselves.

Still, financial planners and travel advocates preach caution, particularly for frequent fliers who already earn status with an airline. Many of these jet-setters would be better off focusing their credit-card strategy on cards that offer more flexible rewards across a spectrum of travel companies, they say. One reason is that these travelers often already get the same perks without the card.

Take free checked bags, a benefit generally available to those with frequent-flier status. Because many airline credit cards come with an annual fee—which can range from $95 to $550—that redundancy can represent wasted money. (In some cases, the annual fee is waived for the first year.) For a family that travels once or twice a year, the calculus can look very different.

“If they get a credit card with the airline that they tend to fly, those free checked bags alone could more than pay for the annual fee," says Ted Rossman, senior industry analyst at personal-finance website Bankrate.com. The first question you should ask is how often you travel. Here’s what else to consider about airline credit cards before signing up: How far do miles go? Many fliers built up war chests of airline points and miles during early stages of the pandemic, says Matthew Klint, chief executive of Award Expert, a service that helps travelers strategize booking reward travel.