Citi halves PremierMiles value — 2:1 transfer ratio

Citi PremierMiles transfer ratio to airline miles changed from 1:1 to 2:1. The cash value of each PremierMile was cut by 10% from ₹0.5 to ₹0.45. This change was effective February 1, 2015, and applies to all transfers to partner airlines such as British Airways and Cathay Pacific.

Cardholders are hit hard by this change, as they now need two PremierMiles to get one mile of a partner currency. This devaluation reduces the value of PremierMiles relative to a straight cashback card.

Our take: given the significant devaluation, cardholders should reassess their loyalty to the Citi PremierMiles program and consider alternative options. The new transfer ratio and reduced cash value make it less attractive than before, so it may be time to look for better rewards programs.