What Happens to Your Frequent Flyer Miles When an Airline Goes Bankrupt
Frequent Flyer Programs Are Not Always Guaranteed: Many travelers spend years building up frequent flyer miles through flights, credit card purchases, hotel bookings, and shopping rewards. These miles often feel like money in a savings account. However, frequent flyer miles are not protected the same way bank deposits are. When an airline goes bankrupt, travelers may worry about whether their miles will disappear overnight. In many cases, airlines continue honoring miles during bankruptcy proceedings. Bankruptcy does not always mean the airline immediately shuts down. Some airlines use bankruptcy protection to reorganize their finances while still operating flights. During this process, loyalty programs often remain active because they are valuable parts of the business.