American Airlines sells first class upgrades for as little as $40. If you buy a coach ticket, they may offer first class to you for less than the current price of first class. If you don’t buy, and the flight doesn’t look like it’ll sell out up front, the price may drop even further. I’ve seen American offer $40 upgrades.
Now, when they’re offering first class for $40 I might get an upgrade with my status. But I might not! They’re trying to sell this to every passenger on the plane. They’d rather take $40 from a once a year passenger than reward a $30,000 or $50,000 a year customer with the seat for free.
But something that many people don’t consider about these upgrades is that they are completely non-refundable. If you cancel your ticket, there’s no change fees on most fares. You’ll get a trip credit for the cost of the ticket, that you can apply to a new ticket later.
The upgrade? That cost is lost. And it’s a reason to consider not buying one!
American Airlines knows this. They even published a policy that they’d give you a credit for the upgrade. But they rolled the policy back, promising to make this change in the future instead.
Eliminating change fees on fares other than basic economy is one of the biggest reason to spend more money and avoid basic economy.
Offering travel credit gives you confidence in purchasing tickets. There’s little reason not to give them your money, as long as you’ll use the credit within a year.
Likewise, offering credit for a cancelled upgrade makes it easier to buy the upgrade. That in turn means more revenue for the airline, as well as greater flexibility for the customer. Hopefully we’ll see a return of this new policy soon.
United Airlines paid upgrades have had this policy for a long while. If you change or cancel your ticket, the segment upgrade money you paid is completely lost. That’s why if I want to upgrade to first class I call and pay the difference to buy up.to first class rather than buy segment upgrades. It’s also usually cheaper that way.
Agreed, Gary. Shame on American Airlines for rolling the policy back. If you paid for it, but they don’t provide it; refund or credit. It’s simple. This ‘bait and switch’ is absurd, and is why we need robust ‘air passenger rights legislation’ in the USA, so that these companies cannot literally steal from people. This is not just a matter of ‘reading the fine print’ or ‘buyer beware’ it’s false marketing. It’s theft.
I’m a bit confused. I’ve been told multiple times that if I cancel a flight or need to make a change I will get a flight credit for the unused upgrade. One area that is very fuzzy is how cash upgrades are treated on involuntary changes due to irregular operations. For the most part if there’s an open premium seat I’ve been confirmed right away into that seat as if I had purchased a premium seat from the start. There have been times in which I’m told that I would have to go back on the upgrade list and take my changes there but if I end up in coach I would get a flight credit.
I have found as an AA CK usually the former happens. Also, seems to depend on the agent, whether at the Admirals Club or on the phone that you get.
@Andrew — Just because United also does a bad, greedy, anti-consumer thing doesn’t mean American (or Delta, or jetBlue, or Spirit needs to.) It’s the ole ‘if your friend jumps off a bridge’ thing.
In my experience, I get a refund if I apply for it on the cost of the upgrade if the ticket isn’t used. Not sure if that has just changed?
Wasn’t aware of this on AA’s part. I believe DL does refund ancillaries (including upsells) when a flight is changed/cancelled.
This is wrong Gary. I had an AA flight (on miles) and paid for upgrade. Had to cancel since plans changed. Got miles refunded along with 5.60 security fee. The approximate $100 I paid for the upgrade was given to me as a credit to be applied against future travel. Get your info correct please!
“They’d rather take $40 from a once a year passenger than reward a $30,000 or $50,000 a year customer with the seat for free.”
@Gary — it’s actually worse than that because you’ve ALREADY PAID for the coach seat. They’d rather take $40 from a once a year passenger than pass on $40 to give you the upgrade.
AA has put a value on your 5-figure annual loyalty, and it’s less than $40.