Dive Brief:
- American Airlines customers who fly basic economy will no longer accrue loyalty points, the airline said Thursday.
- “We routinely evaluate our fare products to remain competitive in the marketplace,” the airline said in a post on X, formerly known as Twitter, in response to a user who flagged the changes. “Customers who purchase a Basic Economy ticket on December 17, 2025 and beyond will not earn AAdvantage miles or Loyalty Points towards AAdvantage status.”
- Other features of basic economy tickets remain unchanged, including one free personal item and one free carry-on bag, free snacks, soft drinks and in-flight entertainment. Customers who purchase main cabin fares will continue to earn five AAdvantage loyalty miles per dollar spent.
Dive Insight:
American’s devaluation of its loyalty program for basic economy flyers comes as carriers are focusing their loyalty and CX offerings on premium travelers.
American has deepened its investment in premium in recent quarters. In response to customer demand, the carrier is reconfiguring its aircraft and increasing the number of premium seats at nearly two times the rate of main cabin seats, executives said on an October earnings call.
Prioritizing premium comes down to economics: While American’s main cabin revenue faltered in recent quarters, premium revenue grew.
Premium revenue per available seat mile outperformed the main cabin by 5 percentage points year over year, Stephen Johnson, chief strategy officer at American, said on the October earnings call. Nearly half of the carrier’s ticket revenue comes from premium.
American’s loyalty program has grown in recent quarters, providing the airline with increased revenue.
“AAdvantage members are more engaged, generate a higher yield versus nonmembers and are a key driver for premium cabin demand,” CEO and President Robert Isom said on the October earnings call.
While this change won’t necessarily make the loyalty program more profitable, it will likely move the bottom line, according to Sean Cudahy, senior aviation reporter at The Points Guy.
“The obvious thing they're trying to do here is to try to entice all of their customers, including their loyal customers, to buy up to the main cabin,” Cudahy said. “Airlines are always trying to get you to pay as much as you're willing to pay for a ticket.”
But this focus on premium is coming at the expense of economy travelers, who have in recent months cut back on travel amid economic uncertainty
The basic economy fare was introduced in the 2010s by big airlines to compete with budget airlines. They are carriers' most restrictive fares, with some airlines, like United Airlines, not providing free carry-ons.
With this week’s move, American’s basic economy restrictions are looking more similar to Delta Air Lines and United, Cudahy said. JetBlue and Alaska Airlines’ basic economy fares are more like what American’s previously looked like.
“This is more American following the pack of its big three competitors than American blazing a trail,” Cudahy said.
