What's Happening?
American Airlines has announced that starting December 17, 2025, members of its AAdvantage loyalty program will no longer earn miles or other travel rewards when purchasing basic economy tickets. Previously,
these customers earned two miles and loyalty points for each dollar spent on regular fares. The airline stated that this change is part of a routine evaluation of fare products to remain competitive. Basic economy customers will still receive one free personal item, one free carry-on bag, free snacks, soft drinks, and in-flight entertainment. This move comes as airlines have introduced bare-bones tickets to compete with budget carriers, offering fewer perks and restrictions such as no seat reservations without charge and last boarding.
Why It's Important?
The decision by American Airlines to stop awarding miles for basic economy fares could significantly impact frequent travelers who rely on accumulating miles for future travel benefits. This change may push travelers to opt for more expensive tickets to continue earning rewards, potentially increasing revenue for the airline. However, it could also lead to dissatisfaction among budget-conscious travelers who may seek alternatives with other airlines that still offer rewards for basic economy fares. This shift highlights the ongoing competition among airlines to balance cost-effective options with customer loyalty incentives.
What's Next?
Travelers who frequently purchase basic economy tickets may need to reassess their travel strategies, possibly opting for higher fare classes to maintain their AAdvantage status. Other airlines may observe American Airlines' move and consider similar changes, potentially leading to a broader industry shift in how loyalty rewards are structured. Additionally, American Airlines will likely monitor customer reactions and adjust its strategies to maintain competitiveness and customer satisfaction.
