Money Minute: United Airlines Changes Rewards Program

United Airlines is changing the way it doles out frequent flier miles, and it may hurt many travelers.

How many reward miles you rack up at United (UAL) will no longer depend on the number of miles you fly, but on how much you spend for those flights. United Club members will get five miles for every dollar spent, and premier-level fliers will get 7 to 11 miles for each dollar spent. The change takes effect next March. Earlier this year, Delta Air Lines (DAL) made a similar change to its frequent flier plan. Some consumer finance experts say these changes reduce the value of frequent flier rewards for people who shop for travel bargains.

There were more jobs available in April than at any time in seven years. The Labor Department says job openings totaled 4.5 million, up from 4.2 million the month before. However, businesses aren't necessarily rushing to fill those openings. The number of people hired in April was little changed from March.

%VIRTUAL-article-sponsoredlinks%Of course, more jobs is good news for people who are out of work, but this isn't: House Democrats say more than 3 million Americans have stopped receiving unemployment benefits because the Republican led House refused to take up a bill to extend those payments. Last year, Congress cut the number of weeks that someone could receive jobless benefits to 73, and then at the end of 2013, the maximum dropped to 26 weeks. About 72,000 additional people lose their benefits each week. By the government count, there are 3.4 million people who have been out of work for more than 26 weeks. That is what's considered long-term unemployment.

Wall Street on Tuesday, the three major averages closed within 3 points of where they began the day. Still, the The Dow Jones industrial average (^DJI) eked out a fourth straight record high.

Finally, (AMZN) is reportedly preparing to launch a new operation focusing on local services. Reuters says it could help you locate plumbers, babysitters and other service providers in your neighborhood -- and present a major challenge to Angie's List (ANGI), Yelp (YELP) and others.

-Produced by Drew Trachtenberg.

5 Most Outrageous Airline Fees
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Money Minute: United Airlines Changes Rewards Program
Passengers have come to expect a carry-on baggage fee out of Spirit Airlines (SAVE), the Fort Lauderdale, Florida, carrier whose itineraries are basically a woven fabric of fees. They've even begun to realize they'll get the same treatment from Nevada's Allegiant Air (ALGT).

But Frontier Airlines -- which charges $25 online, $25 to $50 elsewhere -- is tough to take. The airline had been struggling since merging with Midwest Airlines in 2010. It got worse when Frontier slashed its Milwaukee hub to the bone in 2012 and when parent company Republic Airways spun it off into a low-cost carrier that year.

What was once one of the most comfortable flights in the U.S. and one of the best deals in domestic air travel became the airline equivalent of a prepaid calling card. To completely erase any vestige of the airline that passengers once loved, Republic decided to focus on the Philadelphia market by moving to lower-tier airports in Delaware and South Jersey. In October, the airline was sold to a private equity firm.

The New York Times says passengers should relax, and that the low fares more than make up for the inconvenience of a carry-on bag fee. The Times used pre-deregulation fares as a point of comparison and gave its argument all the context of a grandpa who remembers when candy bars cost a nickel. It's still a $25 to $50 carry-on fee char
Fifty bucks for one checked bag on Allegiant Air. Low-cost carrier, my eye. This shouldn't be a surprise coming from an airline that charges $10 to $35 for a carry-on bag when you check it in online (that's $35 to $75 if you just show up with it at the airport), but that makes it no less egregious.

Allegiant argues that its checked bag fees are only $15 to $35 when you check them in online, but seriously? In the age of the check-in kiosk, does anyone honestly believe Allegiant is putting that extra cash into an employee paycheck? It's grift, and even template-setter Spirit Airlines only starts the in-person bag pricing at $45. Frontier, which doesn't quite have the hang of this whole low-cost racket yet, charges only $25 at the airport for that first checked bag.

When passengers started paying $15 for that first checked bag back in 2008, many knew we'd get to $50 someday. Congratulations to Allegiant for being just soulless enough to push up that timetable sooner than anyone expected.
Blame Air Canada (AC.B) for leading the way on ticket change fees. It charges $200, $75-$150 same day

It's not that U.S. carriers are great in this regard. United (UAL) charges a flat $200 and $75 same-day, while Delta's (DAL) change fee starts at $150 and goes as high as $450, but with a $50 charge for same-day service. These scared little Mounties who tremble in fear whenever a Porter Airlines jet powers up on a nearby runway have the audacity to not only charge a major U.S. carrier price on the front end, but to make people cough up as much as $150 if they're put in a position where they have to change flights at the last moment.

Flight snowed in? Oh well, pay us. Tornadoes near the runway? Too bad, pay us. We ran late and made you miss your connection? Too bad, pay us.

If you combined Toronto Mayor Rob Ford, a perp-walked Justin Bieber, that video where Avril Lavigne uses Japanese girls as props and anything Drake has ever done at a Toronto Raptors game, it just might look as bad as this. What happened to you, Canada? You used to be all polite, laid back and helpful. All of a sudden you find some oil sands and it's like Texas North up there. At least the Lone Star State has Southwest Airlines (LUV) and its zero-dollar change fees. All you have is an airline with a heart as cold as a hockey pond and as dark as any Canadian NHL team's building during the Stanley Cup final.

This fee makes sense on Southwest, which has a legacy of cattle-call boarding, but $9 to $40 for American Airlines?

Delta and AirTran each charge $10 for the privilege because some folks just like getting on the plane early and getting situated. It doesn't make them not have to move when the person with the window seat arrives and it doesn't prevent them from getting whacked in the arm by heavy carry-on bags when the other passengers come tromping through, but it lets them decompress.

That's fine. But $40? Considering that parents with children, seniors, people with disabilities and members of the nation's military tend to be seated early to begin with, there's a shallow pool of priority-boarding folks to choose from. Take card-carrying flyer club members with boarding priority out of the equation and you're catering solely to sociopaths: People who are going to treat the armrest like it's a night under the hoop with Roy Hibbert, shatter the kneecaps of the person behind them with their forceful reclining and launch the seat in front of them like a catapult if the person sitting in it dares to recline his- or herself.

It's bad enough that the airline's already validating this individual. Don't pay $40 to be this person.

The standard sleep set of an undersized pillow and blanket used to be offered for free. Then airlines such as US Airways began charging $7 or so for them. Then people got wise and either left without or brought their own.

As a result, airlines have largely eliminated this amenity. Those that still carry pillows and blankets charge $3 to $10 to buy "luxury" amenities that their competitors just don't offer anymore. They're throwbacks to the days when passengers dressed up for flights.

That is how airline passengers were tricked into paying $10 for a blanket and pillow and loving it. We don't blame Virgin America for doing it, but we credit them for working it into a whole freewheeling culture that includes texting flirty messages to passengers and ordering drinks for them from your seat's touchscreen display -- and hooking up with them in the bathroom with your parents on the same flight, in some circumstances.

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