A week and a half ago American Airlines announced three changes that have a common theme: you’re no longer a valuable, loyal customer when you travel with them when you buy the cheapest fare. Your loyalty doesn’t matter, even if you’re spending $30,000 a year on tickets and putting all of your spending on their credit card.
If you fly expensive tickets for work, and then you’re cost conscious on a weekend trip with your family of four, you will be treated well when you fly those expensive tickets – but not on that trip with your family when it arguably matters most to you.
After eliminating all mileage-earning on the cheapest ‘basic economy’ fares in the fall they will:
- charge customers on basic economy fares $5 more for checked bags than they charge regular customers – and that’s after raising the price of a checked bag $10 for everyone to begin with.
- no longer allow free seat assignments, complimentary domestic upgrades, or the ability to confirm systemwide upgrades on basic economy fares – forget extra legroom as an Executive Platinum member, it’s a middle seat in the back for you.
- and the airline’s boarding order is being changed to de-prioritize AAdvantage members as well. Later this year, regular AAdvantage members will be downgraded from group 6 to group 7 boarding. Higher boarding is reserved for customers paying up.
Eliminating mileage-earning on basic economy fares may save a small amount of money and discourage a few people – who will still buy tickets from American – from buying the cheapest fare. But it’ll also:
- discourage basic economy passengers from joining AAdvantage, discouraging repeat business and eventual credit card adoption, and
- make actually loyal customers feel mistreated when they buy basic, and they take it out on the credit card.
The miles earned on these fares only become useful when mixed with other, more profitable activity. If that never happens, they usually just expire.
American may be reverting to industry mean with this policy, but United and Delta can either do it without being harmed or can better absorb the harm. American is generating billions in profit from Citibank while merely breaking even overall.
Their card used to be number one in the industry in charge volume, now it’s number three. The whole game is the card and layering on new basic economy restrictions – the latest being elimination of elite benefits on these fares – is a distraction.
What’s more, those elite credit card customers are surprised by the change – it comes across as a slap on the face when they find out.
Hey @AmericanAir, where’s your loyalty to me?
– I only ever fly AA
– I book directly through you
– I use your credit card exclusively for everythingIs it true that you won’t give me any miles or loyalty points because I flew economy? Awww, c’mon. You’ve got to be loyal, too. pic.twitter.com/Oh3HXQxLmb
— Kathi Kersznowski ⛵️ (@kerszi) April 19, 2026
American Airlines should be leaning into its loyalty differentiation, not mean-regressing, because they do not have the reputational, operational, or customer service advantages that their competitors do. Why give up what they do have, which also coincides with the place they actually generate the most and highest margin revenue?
Instead, this latest package of changes tells the customers who have continued to stay loyal depsite the airline’s 13 years in the wilderness: you are no longer valuable to us as a customer, you are just your fare.
The experience of flying these days is like riding on a cross-town city bus.
Pathetic.
Agree. It hurts the future of AAdvantage too. Students and young adults out of college are cost conscious. They could also be loyal for life…
No problem – just don’t buy basic economy. End of story. All this hand wringing over nothing.
All airlines should start to subtract miles/points from your account when you buy a Basic Economy ticket and for repeat buyers of this fare, should close their accounts.
I’m shocked and saddened that AAL did not continue Gary’s CK. I would think, even as an honorary, the thot leader would at least get the distinction extended. You’ll always be a top-tier invite-only member on 1990’s hypothetical global airline. *wink*
Thanks for this, Gary. Generally agree with your take – if AA/Citi trying to get more credit cards in major markets (and reward FAs for selling them), these changes are not ideal. And when you’re #3 you have to have better policies to compete with #s 1-2. That said-
Bags – Bag policy is not changing though for status members and card holders, no? Still getting your status bags and first bag free for cardholders? And for all basic still getting a free carry-on? So yes they are charging more but also probably just trying to make the case to basic folks that they should really get that Citi AA credit card…
Domestic upgrades /WFBF – look, occasionally they came through when traveling with the family, but this isn’t exactly the end of the world based on frequency of upgrades to begin with. But if you want domestic first and then actually pay for the ‘tens of dollars’ upgrade I think you still get bags by paying for the upgrade in addition to the seat, etc. And you get miles/LPs on the portion you pay for the upgrade, no? So a good strategy could be (1) buy basic at a cheap price and (2) check within 24 hours for the cost of the paid upgrade. It could still price out cheaper than just buying a domestic first class ticket. And if it doesn’t, can cancel w/in 24 hours and get your refund.
Seat assignments – Obviously I’m not a fan of AA’s paltry MCE offerings to begin with. I do understand that they want to try and monetize that portion of the cabin more and it’s impossible to do so because they don’t have enough MCE seats and status members just take them before they can sell them (hello 787-9P with all of 18 MCE seats, only 12 of which are family friendly non-exit row – whomever made that choice should be fired). So I could see them restricting selecting MCE seats for status members, even perhaps preferred seats, but to not allow regular seat assignments at all – that’s really brutal and the worst of all the changes.
Mile/LP earning – The lack of any miles/LPs on basic tickets – look, it wasn’t much to begin with, but it was something. Just have to do the math between basic and main. And so many good ways to earn AA miles/LPs (hello AA Hotels folks) it’s hard for me to care too much.
Award Tickets – The best thing that AA has going for it is that unlike Delta, it does not have “basic” award tickets. While we can all anticipate that being the next shoe to drop, for now, book your family travel with AA miles. You can often find excellent economy rates including on international travel. And then you’ll get your MCE seat benefits where the difference between basic and main is the most (usually $100 o/w pp upcharge).
@ Gary — Customers’ loyalty never mattered to American, or any other airline.
I have said all he same things. American obviously no longer values all their loyal customers. I can spend my money with anyone, once my current miles are spent I no reason to show loyalty.
@Retired Gambler and Matthew…. Trolls that you are….. when booking with miles the only 2 choices are Econony or Business and business only has a limited amount of seats. So your comment has no merit.
Book with points. Rely on partners. Visit Canada.
in fairness loyalty never mattered to American, and they have always treated everyone poorly. I’m embarrassed by how long I was loyal to them, Delta is so much less painful
Gary, do you have any recent news to report? This has been going on for a few weeks now.
Looks like a smart move, one of the few AA has made lately. Giving away the store on super-cheap fares made no sense.
It’s no longer about patronage, it’s about profits. If you don’t make the airlines money (not just AA) there will be little to no rewards. The game has changed. Maybe you can show the nurse on the doll where the airline hurt you.
As the saying goes, “Want ‘treated well’, buy ‘treated well'”
@Gene – It’s amazing how you manage to be wrong about so many things, so very often. Of course airlines once cared about loyalty. Why the f**k do you think American started AAdvantage in the first place, you moron? What an inane comment.
Really do not understand WHY all the hullabaloo over the changes…………if you purchase the CHEAP/Low Fare Option the benefits need to adjusted accordingly. There is No Free Ride for Anyone, Money talks and BS walks. Loyalty…………..lol………they know exactly just how “Loyal” you really are. These changes should have been implimented long ago and the Biggest complainers are the one’s that click CHEAP and are awaiting their movement on the Upgrade List.