American Airlines CEO Robert Isom enthusiastically cheered the end of first class upgrades. Speaking at the Bernstein 42nd Annual Strategic Decisions Conference on Wednesday, Isom was asked by the host about frequent flyer upgrades:
[A]s you think about the technology and that in-app buy-up experience, that’s something where I know just from my own experience, maybe a couple of years ago, it would seem like you guys were kind of far behind in terms of giving away the upgrades instead of asking to get paid for them. Do you feel like you’ve closed that gap relative to the peers in the last couple of years?
Isom enthusiastically replied, “Absolutely.”
He then explained that they’ve “gone through a couple of phases of redesign: of their mobile app, and concludes that it “definitely does a better job of laying out what’s available and why there’s benefit to potentially paying some more.” And he put selling buy ups instead of giving out free upgrades in the same merchandising category as “pre-purchase bags, checked baggage.”
The problem with this at that one of the four pillars of American’s strategy is the value of the AAdvantage program. Isom even describes it as what holds the rest of the strategy together,
wrapping that all into the industry’s leading loyalty program. Everybody wants an AAdvantage mile.
But he’s devaluing those miles! Last summer they eliminated traditional mileage upgrades altogether, now just letting members spend miles as cash to pay for post-purchase buy up offers at low value per point.
And they’ve become very aggressive devaluing status, preferring to take $40 from anyone who will spend it to upgrade rather than making a first class seat available to a customer that spends $30,000 or $50,000 a year on tickets (or $200,000 a year on their Citibank co-brand credit card).
The twin pillars of loyalty are recognition and reward. Reward is your points currency, your earn and burn. Recognition is treating your best customers better. They want points, too, but those are table stakes. As Stephanie Meltzer-Paul put it in this week’s So Many Points newsletter,
Members will earn and consumer points like water (and demand points when you don’t have it), but the real emotion comes from exclusive service, access, great technology that feels personalized, and more. Points create a reason to transact, experiences create a reason to care.
American’s status members spend more, buy premium products more, and transact with the Citi cobrand more. And the single best value component of status is upgrades. The trend towards taking those away – having moved from selling only 10% of the seats up front 20 years ago, to half a decade ago, and now to north of 80% means that the main motivation for staying loyal to an airline is gone.
That leaves schedule and price and product, but schedule and price are commodities and product isn’t something that creates a durable advantage as long as competitors are willing to invest. Everyone but Delta is adopting Starlink wifi, so while United is the fastest with installs that advantage will dissipate quickly.
Ultimately, with airlines selling first class upgrades for as little as $26, it no longer makes sense to ‘chase’ status and mid-tier status is the sweet spot for extra legroom seats, earlier boarding, and some priority during irregular operations.
Looks like Isom is incapable of reading the room.
Loyalty may not mean profitability. I could fly everyday of the week, 365 a year on BE tickets and based upon ticket sales only I would still be unprofitable to an airline. Face it the days of near limitless free upgrades are gone. All of the US3, AS and JetBlue are filling the premium cabin with paid premium or paid upgrades.
Most of the upgrade offers if you wait and monitor are pretty reasonable. If you don’t want to pay out of pocket then you can play the upgrade lottery. It’s that simple.
Get over it Gary. These aren’t the programs of 20-30 years ago (or even 5-10 years ago). All hotels and airlines are trying to monetize their upgrades. The days of assuming an airline or hotel upgrade is a benefit (regardless of status) are over. Be happy if you get one but if it really matters pay for the suite or first class seat.
BTW, I agree with AA they should be doing this. Their competitors are and they are leaving money on the table. Also, there is a stickiness to the programs (likely due to routes more than anything) and frankly, for all the whining, few legacy high elite AA, DL or UA travelers will actually quit flying the airline. They have all modeled out the impact of these changes and determined they are a net positive regardless of you feeling about the matter.
This is precisely why I got away from airline mile accumulation. It’s all credit card or other non airline miles I strive for.
Being lifetime gold in a major airline hub doesn’t hurt.
They have dropped all partner J award availability on non-stop transcons LAX-JFK. Reported as just close in, but it all disappeared from AS website ( except July 4) , for the next 330 days.
Two fundamental rules in play: (1) Never leave money on the table, and (2) “Want First, Buy First.”
I’ve largely given up on “loyalty” programs and become a straight-up schedule-and-price free agent these days for exactly those reasons.
Penny-wise and pound-foolish. Everyone and every thing in the US is in a race to make it to the bottom . Learnt from our evil government.
Astonishing that Isom doesn’t understand what loyalty is all about.
The value proposition of airline loyalty is essentially gone in America. Airlines outside of the US do not offer complimentary upgrades in the same way that US carriers do, but the vast majority of foreign carriers do offer lounge access for mid-tier and higher status levels. Complimentary checked bags and “priority” boarding can be obtained through cobranded credit cards. There’s really a need for priority check-in these days; often the “priority” line is longer than the main bag drop line. Airlines want as much of the experience as possible to be DIY these days. Perhaps there’s still some value to GS, CK, and 360, but that’s for the top 1% of the 1% of travelers. As someone who was Delta Silver Medallion in 2005, I felt like a king and over 50% of my upgrades cleared. Fast forward to 2020 when I was Exec Platinum with AA and almost all upgrades cleared (and still felt ALMOST like a king), and now I see no compelling reason to chase status any longer with any airline (except Air France Platinum, but that’s just for LP mileage redemptions…admittedly a fringe case!). Being a free agent these days and prioritizing price and direct flights is so much more valuable to me than chasing status. Until airlines create a more compelling loyalty scheme, I will be loyal to no one.
Regarding, “Ultimately, with airlines selling first class upgrades for as little as $26, it no longer makes sense to ‘chase’ status and mid-tier status is the sweet spot for extra legroom seats, earlier boarding, and some priority during irregular operations.”
In principle fully agree. For us, we have an atypical travel pattern and airline usage. Most of our paid travel is overseas on partner Oneworld airlines. So we “chase” status for the OW rather than the AA benefits – for example, the fantastic first class Cathay Pacific lounges and other niceties
And on the partner airlines we have been upgraded a few times from PE to biz class, including recently.
Lol what a jerk. So glad I’m not an American flyer.
@George Romey
I wonder if you are a corporate bot or Robert Isom ? Your take is so lopsided towards corporate interests.
Those who want free upgrades are like the fat cat rich. Make them pay their fair share. Tax them a lot and then add more taxes. Punish them.
Upgrades should be given to the poor.
AOC for President 2028.
Real simple, loyalty programs for the most part no longer mean anything. Free Agent travel is the only way. If you want first class, pay for it, otherwise, the days of true upgrades went the way of the fax machine.
Yes, at this point staying loyal to an airline brand really doesn’t do a whole lot for you and you should actually expect very little to noting and when you do get the occasional crumb, be happy.
My choice of hotel brands is (so far) still delivering what they promised me, but the 3 million points I have with them have certainly been devalued, upgrades to suites are 9 out of 10 times consistent….. So far
Now they have to put the pieces together. Isom is correct – an AAdvantage mile is more valuable than what DL and UA offer. Another piece of this puzzle is closing out the Alaska saver fare close-in loophole. That should be gone, but it should be replaced with a combination of what FlyingBlue and DL/UA already do. From FlyingBlue – high status members get access to additional saver awards. From DL/UA – you get a mileage discount if you are a credit card holder. Put that all together and, while folks may miss the Alaska pricing, you create an ecosystem that is better engaged with.
WFBF is just the reality now. First class comp upgrades are a thing of the past. As I have been saying, extra legroom economy is the new first class comp upgrade. That’s an actual real disadvantage that AA has – they keep shooting themselves in the foot by having substantially less MCE seating than DL/UA. Including on their newest planes where the 787-9P has a grand total of 18 MCE seats and the XLR has 12 – which are all exit row so not bookable by many, including if traveling with a family. It’s abysmal.
American Airlines hit the inner marker and is on ILS final approach to hell.
Seems that AA is finally figuring out how to make a profit! Good for them.
@Gene – they aren’t, though! They were break even in 2025 and their current 2026 guidance is flat year-over-year. And that’s despite $6 billion in cash from Citibank which they’ve previously reported comes at a greater than 50% margin.
Shamefully the airline I knew and proudly wore wings for, has lost its way.
It’s their airline, for the most part they can do what they want. It doesn’t obligate anyone to fly them.
@derek
Looks like someone needs a job and an understanding of how the world works. Not everything in life is free, some of us have to work and trust me, we pay taxes unlike those expecting to feed off the government teet.
@ Gary — Well, maybe they can beat expecttations for a change! After all, UA and DL effectively stopped handing out free upgrades like 10 years ago. Personally, I’ve always thought that airlines giving away their companies’ most coveted product was stupid. When I used to hang out in a certain small DL club and talk to the agents, back in the days when only elites had access, EVERY SINGLE PERSON entering the lounge would ask where they were on the updgrade list. I actually think that where things have evolved to today that it is borderline fraud that airlines even claim that status upgrades are a benefit. They should just stop giving them out, except when operationally necessary. After all, if someone buys first they should have the opportunity for an empty seat next to them, just like the people in the back of the bus. WFBF!
Seriously, what kind of kompromat does Isom have on the BoD?
If I ever see a first class upgrade that cheap I’d take it, but I’ve never seen anything close to that! Still proves he values no one’s loyalty.
Isom is the most incompetent CEO to ever lead a United States based corporation.
Period.
Ask AAny employee.
Why should it be free. Loyalty programs are more a harm than anything. Airlines lose tons of money catering to loyalty fliers who easily abandon them when something goes wrong. Pay for what you want. Its a business not charity. That’s why AA is always in the hole every quarter
Unbelievable the people here that think everything should be free. Presumably that means you should be willing to work for free. But these are the same people that think Spirit would have prospered if they had lowered fares, paid people more, gave monetary compensation out for delays and offered better customer service. The money they lost on every fare could be made up in volume.
The sad reality is they’re not loyalty programs anymore; they’re just points programs. When you look at it that way, why get points that really only work for one airline, when Amex, Chase, Citi, Built, etc. have more partners and redemption options?
Besides the fact that the airlines are barely upgrading people, as an AA Platinum, I’m still like 30th on the list for upgrades that rarely clear even #1. I can’t seem to find reasonably priced flights with AA points unless I want to take some of the most ridiculous routing…
As of this year, I’m a “free agent.” I’ve pretty much focused on 5X Amex Points on my platinum card and just keep a UAL and AA airline card for the priority boarding. Whatever points I earn directly with an airline, I’m kind of indifferent to.
I totally agree with AA’s decision. Over the past few years, I pay full price for my first-class seats. It became impossible for upgrades and I am platinum. Next, they need to bring back the separate bathroom class. It sucks when you’re trying to enjoy your meal and the main cabin people sneeze on purpose while walking through. AA also allows them to line up in the aisle or near the door and wait.
@Bill – respectfully you have it backwards. American is generating ~ $6 billion cash from Citibank, and has reported a margin greater than 50% on the AAdvantage program. That’s the only thing making money, more or less, and the airline as a whole (inclusive of the loyalty program’s ~ $3 billion profit) only breaks even. It is everything else that loses money.
The concept of upgrades for Exec Plat clearing as far as 100 hours in advance of departure has always been a joke. NEVER once has it happened with me (15+ years at that status level).
But since the debut of monetized upgrades on the app, when I have been cleared for comp upgrades this past year it has ALWAYS been less than 36 hours before departure, even when the cabin shows less than half the seats assigned.
I stopped chasing those loyalty points since before the pandemic. Or at least I do not actively seek them. It’s just an engineered perception of value. I consciously avoid US domestic first class products in particular simply because I perceive them as total ripoff. They are merely glorified seats and refreshments. The only thing luxurious about it is price tag and really none of the true luxury that comes with truly luxurious Airlines. Let’s put it this way: Arikines are not created equal though the like to be or at least think they are btter off than their peers. Airlines cannot create, craft, or engineer equally that make-believe perception of luxury they think their premium offerings represent. Some Airlines do it better than others. Those who, they invested more in their porducts and delivered better. I will never drop cash over the likes of Delta, American, or United for their premium products as quickly as in a heartbeat as I would with other Airlines I perceive as having better value. These 3 are merely reselling second-rate products for a huge profit margin. They give you a Corolla for the price of Ferrari. At best Delta’s, American’s, and United’s premium products are hyped and pretentious. They don’t really live up to the real standard of premium that I come to know, experience, and demand with my travels. The bar is set pretty high by their competitors. None of them rose to that level. I still have to experience an airline lounge in the US that meets my definition of elevated. So far everyone is the same. They are all boring, either branded as Delta One lounge, American Flagship lounge, or United Polaris lounge. If that is the kind of lounge I get, there’s Centurion lounge or Chase Sapphire lounge. They are of about the same category. I surely have a different standard for lounges just because of what I traditionally know and still experience as real luxury in air travel and the lounges I traditionally have access to.
I tried to have loyalty because there are some perks, but with them taking this away, I’m gonna take away American Airlines for my flying habits. There are other airlines. The people that get the parks are usually the ones that spend the most and by you taking that away, I will feel you’ll lose some loyal customers.
I’ve already been flying more on Delta than American. As a current executive platinum AA FF member, the typically higher cost for an AA ticket no longer is justified as the upgrades were the only reason I spent more to fly AA. AA is just a expensive cattle mover. The joy is gone.
And this is why I no longer chase status with AA. No longer go out of my way taking a connecting flight instead of flying direct in another carrier. No longer put down on my Citi or Barclay (now defunct) credit card to drive up those loyalty points. No longer shop on the AA shopping portal. Loyalty became a one-way street with American Airlines. They no longer reward their frequent flyers at least in the ways they have over the years. I’ve been an executive platinum for close to 20 years. No longer chasing that goal.
If your competitors degrade the rewards for elites, you can.You’ve got to fly somebody.
“Your mileage might vary” seems apt from my perspective, as I am sitting now in a seat purchased with not many miles and upgraded at 99h. Yes, its midweek and LGA-GSP, but it happens more than half the time for me on similar routes. And away from the US, CX upgrades me within Asia most of the time too, but CX treats OWE very well. AA sometimes treats us well, but more so on international routes. Will I chase ExPl this year? Prob not. Takes too much work counting beans and cash when I don’t have work flights and hotels to book. But if it just happens, I will take it!
@CEO Robert Isom it is time for retirement to the Nursing home. You have lost touch with reality.
Just like politicians don’t care why would they care about ‘the people’
I have no problem using another card that receives money back. I will give someone else my $75,000 a year if he doesn’t care about loyalty
Hey a hole, I paid for upgrades
This is just another way to screw over the “loyal” travelers. “We owe it to the shareholders “ is how that conversation started….
They want to give the board more$$$ and the customers less services & perks s… I do have choice and I spend my dollars as votes I’m not voting for AA any more… bye bye ♀️
American Airlines is by far the worst of them all now that Spirit is shut down. Robert and his band of thieves and liars would extra every dollar out of our pockets if given the opportunity. I have active complaints with the DOT due to nefarious and deceptive business practices by American. I’ve taken a large position in Delta. I can’t wait to see American Airlines and this moron Robert shuttered.
They shouldn’t even be able to use the word American in their name, it’s a skid mark on the great reputation of this beautiful country. President Trump should force them to change their name. “Chinese Airlines” is a lot closer to the level of quality and service they offer. I hear there’s a discount on the trademark for “African airlines,” Robert can use the money he stole from hard-working, god-loving, honest American citizens to pay for it.
We should tar and feather this guy. Crooked. crooked. crooked.
I used to really enjoy the advantage program and flying on American. Times have changed and the latest devaluation of the program, although understandable from a pure cost standpoint, is troubling. Does the additional revenue replace what will be lost from the pissed off fliers. Anyone’s guess. But from my standpoint I will not be setting foot on one of their planes for the foreseeable future unless I absolutely have to. And my first inclination is to tell them to take their biggest plane, 777-300 and shove it up their ass
What’s going to happen when we hit a tipping point where enough people realize credit cards and miles are monopoly money? Does that revenue stream ever start to dry up?
And on 5/19 they took the ability for members with status to book a seat on basic economy flights. All without warning or I would have booked the flight I had on hold as well as several others. Now will consider other airlines and I’ve been executive platinum for years.
I think being EP with AA is useless, except the 11x AA miles per dollar spent. I actually do not like reading or talking about th AA loyalty program because it reminds me of how poor it treats EPs. I think lounge access (via cc) means you get all of the benefits. The EEs at AA do not care.
I’m Executive Platinum. That means that I fly American even when it doesn’t make sense to. It also means that I have joined the Admiral’s Club, have multiple co-branded credit cards, and use AAdvantage Hotels and AAdvantage Cars.
If I stop getting my upgrades, I will absolutely switch to Delta or United. Rather than hustling for a $40 in-app upgrade, American is better off giving it to me and keeping me in their ecosystem.
For now, I’m still getting upgraded more often than not because I have enough LPs to outrank most other EPs in the pecking order.
Gold, Platinum, and Platinum Pro are generally useless for getting upgrades anyway.
Free agency is SO refreshing. Fire up Google travel and compare fares and schedules, then buy whatever makes sense at the time. Miles/points don’t figure into the decision calculation at all. Chasing status is for those who “haven’t gotten the memo” about the foolhardy nature of that mission.
So im a EP, with a good amount of rolling lps. I get upgraded 80% of the time being phx based and buy up the other 20% based on expertflyer loads and history. So if you are flying enough to be an EP, you are in a really good paying job. Not hard to budget to buy up. Its important to me so i do when i do the math and see i wont be upgraded. If its not sit in the back and shut up.
Best approach for the public- take an airline, any airline and Everyone boycott it for a solid month. Then pick another airline the next month. Until they are hit in the pocket book the airlines have NO motivation to improve leg room, luggage fees, availability of food, movies etc.
Flying used to be fairly enjoyable, now it is just an endurance contest. It’s your money, make them earn it.
First year in 21 that I am not Exec Plat. They are so clueless. Multiple phone calls from AA with urgent plea to “secure my status” for only $2,799. I’m out. $140K on AA credit cards, EXP domestic and international travel, and still no upgrades. Well, there was that one to Milwaukee in January during a snow storm, but I digress. This airline annoys and abuse its best customers, just to give Joe Sixpack a $60 first class upgrade. They trade tens of thousands of dollars in revenue from me to chase after the guy who flys once a year. You can’t fix stupid. Maybe that should be American’s new motto.
This article is do badly written, it’s hard to fathom exactly what is being said and by whom. Take a class on English, please!
I agree, AA has moved from treating their customers like customers to treating them like numbers. I have been a loyal customer for over 20 years but no more, I cancelled my Citibank AA card and will not fly them again. The last two flights with them, one domestic and one international, were absolutely crap. Dirty planes, rude gate staff and condescending flight attendants. AA has a lot to learn about customer loyalty!
Chasing the dollar is burning the loyalty bridge to regular AA clients. If Isom wants anyone that will pay we wish him well. As a long term regular, that gets less and less for status, I will be looking for a different carrier.
When Isom took over, first thing he did was reduce & clsim he merged customer service for high quality. Lie#1..he removed the ability of agents to make decisions, judgment calls. He also renove his assistants from the customer service. Prior to him if you wrote the CEO, an asst would write & call you to resolve issues. Isom proved he does not give a damn.
For the last 5 years Isom pronised a newer better fleet down to regional carriers. Instead he slowly reduced the qty of first class seat. Last year I was thinking of walking from my executive platinum status. By August as AA began doubling the Business Class fares, especially to Europe, I began flying Eur-carriers who were half the price. I still scpred Platinum Pro. My business out of PTY increased. Now AA might have 1 flight that allow connections getting me there same day. The rest all require a layover in the states. Too, in BC/FL the ticket is double that of UA, Copa & Delta. But best case scenario there’s only 16 BC seats to vye for on AA. Isom-Lie#2…there are no seats to upgrade to.
I gave up on American years ago. Sad that flying first class today is inferior to flying coach in the 90s. It’s not just a question of getting the best bang for the buck over loyalty, its now a conscious decision to NOT fly American, well, EVER. Id rather paying more to a competing airline. Loyalty means nothing!
Being Gold for life has no value to me anymore. So done with American!
Unfortunately, America Airlines change in their upgrades policy is essentially due to unmitigated Corporate Greed. Most comments on the subject are from seasoned fliers.who can easily pay cash for their upgrade. Many other flyers, strongly prefer to usé points rather than cash. Points are easier to accumulate.rhan cash. Consequently.the devaluation of points results in loss of overall point value. Once again those with the least money pay the most for a trip.
Ty
I work for American Airlines- most of my frequent flyer miles are with United Mileage Plus. Truly sad when your competition has better routes, leadership and vision than we have.
There’s an old, but important saying that has guided me through the years: ‘Long after price is forgotten, quality of service will be remembered’.
Dedicated EP here with family members at PP and Plat and this is likely the straw that ends it. Certainly we’ve gotten some comp upgrades over the years and they’ve been appreciated and a definite perk to staying loyal with AA – Even when it didn’t make sense due to flight times, slightly higher prices, difficulty using miles, etc. And we’ve definitely paid full price for First / Biz at times when booking but now if any common traveler can pay a heavily discounted price for an upgrade, that devalues the whole experience. 1) Why pay full price when booking when you may be able to hustle a cheap upgrade. So, in the long run, will AA lose out on booking 80% of the paid first-class seats at thousands of dollars if customers don’t see the value. All for chasing the non-loyal customer(s) that paid for a money-losing economy seat and a cheap upgrade. The math just doesn’t work as I see it. 2) At least with loyalty based upgrades, the traveler getting the upgrade was seasoned and deserving. Not likely to wreck or interfere with the premium experience of someone who paid the full first-class ticket price.
First-class cabins on the narrow-bodies are more like PE anyway but priced above what the experience really is.
Very much agree with LLA regarding stricter enforcement of the separate cabin restroom policy is needed as well.
Hopefully this seemingly foolhardy policy, among others, will soon be reversed and the value of loyalty will again be appreciated. Best of luck AA – We will be watching from other wings.
Sheesh. Isom trying to make Kirby look good, it seems. Like, if you’re really gonna do this, don’t actually say the quiet part out loud.
As others have said, award availability is diminishing, not just with AA, but everywhere. Indicative of broader strains in the wider economy.
Well his days are numbered and his jobs lifespan is 3 to 5 years hopefully it will end sooner due to dumbass ideas like this one. we have options and can easily be loyal to delta united or others who reward loyalty. Sad they pay idiots like isom big bucks he’s worth $21 an hour
Nonsense. Today, 99+% of “loyal” customers who have status are OPM flyers.
It makes sense airlines dont really care about their “loyalty”.
Hub captive, price insensitive, without much travel choice.
If you as an elite are flying in the back, your issue is with your employer not the airline
American use to be my preferred airline but they have declined significantly. This move only proves my point that the decline started at the top.
Glad they’re keeping people like you out. Ruins the service for paying customers.
Traveled for 45 years by air, and over that time since american in 2013 merged us airways, they have become very predatory on pricing, seat size and leg room reduction, and general employee attitude. Yes, I have a longer birds eye view, pun intended. It’s interesting how their CEO, just keeps pushing this attitude of made the customer frustrated and pay more. I now fly AOA (any other airline) for that reason.
Isom is an idiot. He wouldn’t understand customer loyalty if it bit him on the….
American Airline is not the only game in town. As an Executive Platinum Status member who feels blindsided by these changes I am excited tto now be given the liberty to try Delta and United or any other airline besides American Airlines;. Let’s get real a mile earned is a mile earned so why shoe loyalty to a company that doesn’t respect lloyalty, A CEO who does not think Loyalty should be rewarded for cllient retention in this competitive market is delusional: Let’s see if he feels the same a year from now when Frequent Flyers explore better alternatives
He should be more worried about the actual operational organization of his company. American is the worst airline I have ever traveled on.
Their weight of their shortcomings are shouldered by the customers- most of whom are NOT flying first class, and they don’t seem to care.
I’d rather fly Spirit or Frontier than American Airlines. I have yet to fly through Charlotte without AA completely destroying my itinerary. 100% of the time incur delays. 70% of which are serious itinerary changes, and of those, half have resulted in overnight stays/delays in the crappiest accomodations.
We paid for the upgrades on our flights from Florida to Seattle and back. American overbooked the flights and had people who boarded earlier than we did in our upgraded seats. We sat with the other couple we were traveling with who didn’t pay for the upgrade. American refused to refund us the money we paid to upgrade which was over $450. I will never fly American again!
Loyalty is rewarded. That is a truism of civilization, time immemorial. A commitment to the turbulent, forgive the usage, relationships we’ve maintained with an industry so astonishingly myopic and with short-term memory related to those of us that build purchasing programs in our businesses, have our travel teams commit to often sub-par routing for our recreation ticketing is appalling. True to expect to pay for what you expect to have, however to hear that distilled to a cash register-type transaction with no background, a la the “Get over it Gary…” comment, screams nouveau riche and discounts the foundational pillar of this arena. It’s a sad state of affairs, and near-shore-registered jet shares haven’t missed it. Have your teams reach out to explore them. You’ll be surprised at the lateral fiscal move and summit of experience growth. Great call out Gary. Loyalty is dying, but a free globalized market isn’t!
Well as fun as it is to get outraged about him saying this out loud, the fact is the entire industry is doing the exact same thing from the other airlines (Delta, United) to hotel brands (Bonvoy and Hilton killed all free room upgrades when they moved to those “upgrade awards” you have to redeem) and rental cars (Executive Aisle & PC sucks nowadays).
Felt this coming I had Gold Status every year from travel every month. Then about 2 years ago the ability to retain just the basic status became far more difficult. I finally lost Gold status and as a result I no longer look first at AA flights. I stopped using my Citi card and now shop only for cheapest cost of the major airlines where as before I would pay a little more to stay loyal.
I’m a lifetime AA platinum member with close to 3,000,000 miles flown over 40 years. Now I’m retired and living on a fixed income and always bought basic economy fares because I was always able to book my seats and be eligible for free upgrades. That has all been stripped away. AA has broken their moral contract with those of us who helped build their airline. Loyalty means nothing anymore. AA, prior to their US Air merger used to be a great airline. Since then, it’s been a race to the bottom!
I quit chasing points for hotels and airlines years ago when they started randomly devaluing them and therefore I have no loyalty because it’s a two-way street.
Not to get political but the Biden administration was in process of fixing this by not allowing devaluation greater than inflation but that’s on hiatus currently.
I just use my Costco Visa and get my 3% cash back which is paid in cash every year so it’s inflation adjusted.
Everyone knows profit is more important than the customer. Sometimes you find a company that is willing to try to balance loyalty with profit. Not true says the CEO….profit is always more important to AA then the customer.
Brand loyalty is for suckers and idiots. These are companies, not friends.
The root of the problem isn’t just the airlines, it’s the government policies that allowed wave after wave of mergers. We went from dozens of carriers to a tiny group that now realizes it has near total control of the market. When companies know you have no real alternatives, they can gut loyalty programs, shrink seats, cut service, and nickel and dime passengers because… where else are you going to go? The result is a system where flying is intentionally miserable. They’ve engineered discomfort so expensive upgrades feel like the only escape, even though those “premium” seats are basically just a few extra inches of space. If a new airline entered the market with reasonable legroom and service that wasn’t designed around squeezing every last dollar out of passengers, people wouldn’t be scrambling to pay for upgrades. They’d just choose the airline that respects them.
Interesting comments. I stayed with American because of upgrades. Now no reason to. I hate Citi bank credit card, now I can cancel because I don’t care about accumulating miles. I would never pay for their upgrades because even for free I didnt see much value.
Executive Platinum for several years here. Upgraded travel is one of the only reasons I stay with American. It’s certainly not for their on-time departures. It might be time to take my money elsewhere?! ….and as I’m typing this I’m sitting at the airport and got a notice. Delayed an hour. Shocking
Lifetime EXP here and have lost so many systemwides so now just purchase 1st directly. That said, AA hasn’t been competitive on the 1st Class fares so have been flying Delta quite a bit lately – after years of loyalty on AA, now just burning my millions of miles on inflated “free” tics. Sad how far down they’ve gone…
Looks like CITI BANK along with AA WILL NO LONGER GET MY BUISNESS.
Its about time AA did this. Just like they should charge at the gate for oversized carry-on having to be checked. Everyone knows the schemes because of toktok etc, so why not make em pay? Good on him for finally getting something right.
Isom & Bastiian. Two loser CEO’s of legacy airlines continuing to scam the flying public after taking huge taxpayer bailouts to line their own pockets during Covid. Queue Young Frankenstein scene where the villagers take matters into their own hands. Only way these idiots will get the message.
Simple greed. I’ve been loyal FF of American for over 15 years. Points earned by flying with them over others. If the perks like free upgrades when available are no longer offered, I really have no reason to continue to chose them over others. I’ll be flying with other airlines for all my corporate and personal trips going forward.
One issue with the Aadvantage program is that if you fly a lot internationally OneWorld is weak. Cathay is their only option to China, and Cathay is a terrible experience. Booking a flight to Germany all the options were United and its partners. I’m executive Platinum and I’m looking into changing because there are no tangible benefits.
I just flew American Airlines. I paid for first class tickets from Alaska to New Orleans. They completely ruined my flight experience by changing my flights without notice and putting me on another flight due to weather.
Even though the original flight was still leaving just an hour later, I tried to get back on the same plane, but they had already given away my seats. They assured me that I was still in first class all the way to New Orleans. That was not the issue.
A 10-hour flight turned into a 24-hour ordeal with three plane changes and two 4-hour layovers. They rerouted me all over the country instead of the original Anchorage to Dallas to New Orleans routing.
They can keep their better legroom and free or not free drinks. I will give my money to Delta or anyone else before I fly American again. I would even consider Southwest before them.
I’m sure Delta and United love every time Isom and AA make a change like this because it moves more people their way.
Bad move Isom. It will do nothing but Drive your best customers to Delta and united.
“And they’ve become very aggressive devaluing status, preferring to take $40 from anyone who will spend it to upgrade rather than making a first class seat available to a customer that spends $30,000 or $50,000 a year on tickets (or $200,000 a year on their Citibank co-brand credit card).”
And so the circle closes, and Isom admits what we “loyal” customers have known for about the past 2 years – He doesn’t care one bit about “loyalty.” I’m a weekly business flyer with over 3.5 million hard-earned miles. I’ve been EP for more years than I can remember. Over time,. I’ve watched this program slowly degrade, and then quickly fall flat in the past 2 or 3 years. Thankfully, I’m retiring at the end of the year and the program will no longer matter to me as long as I can quickly use up those 3mil before they are totally valueless.
“The twin pillars of loyalty are recognition and reward. Reward is your points currency, your earn and burn. Recognition is treating your best customers better.”
Well said – but not heard or understood at AA headquarters.
I have avoided American Airlines since the 80s and I see it’s still not worth going back.
America West strikes again.
To be fair, skypeso factory ain’t much better
As someone who actually pays for a first class ticket … I am HAPPY! Why because I do not like those sitting in first class who did the upgrade or got it free. If you want a first class seat pay for the damn seat like I do. And those of us that pay for first class seats are demanding more and airlines are responding. It was not until I was in my mid 50’s that I was able to afford a first class seat and it bugs me when I seat a tik whatever sitting in a first class eat as they do not appreciate the hard work those that have earned that first class seat! Just look at what delta, UA and what SWA are doing. And even breeze had responded! A first class seat on breeze is the same as delta for the destinations I go to and you know breeze ascent aka first class seats are awesome. I will NOT fly a 737 on delta first class as those seats are absolute trash… only the Airbus series will I fly on Delta! Even their 757/767 aircraft are atrocious in first class!
I mean this isn’t really news; this has been the reality of domestic upgrades for at least 2-3 years IME. What’s more shocking is the outright middle finger Isom just gave to elites. Why don’t they just get rid of AA elite status at this point? Just monetize everything. Sitting in economy but want a glass of $5 wine from business class? 5800 miles or $65!
@Jon Smith for the record I agree with a lot of what you’re saying – we’re also in a position to pay for J/F more so we do so when it’s reasonable, but wtf does Southwest have to do with anything? Did they introduce first class and I just didn’t noticed on our Southwest flights yesterday?
As a EP, it looks like I might need to start using a cash back card and use the generated $15k cash back to purchase the upgrades versus relying on scoring a upgrade that might or might not hit depending on whether someone else decided to pay the $100 upgrade fee. The loyalty aspect of the “free” upgrade based on “earned” status and spend was what was keeping me loyal.
Citibank will feel the response. I have three of their cards including the Executive Platium. At this point, with the exorbitant interest rates, the only advantage are the airport lounges, which are increasingly crowded and as of late, I have had to wait in line to enter them because they are constantly at full capacity without day passes.
Where’s the “advantage” in AADVANTAGE?
Loyalty was never about free things…People get expensive credit cards, redirect their spending through them and have to fly and spend alot to get free upgrades to first class…this is not a government handout! It just means I will get a different credit card next round…i guess aa rather cash for seats than $$ out of credit cards..the whole “airlines are banks” thing was getting crazy anyways
For flights less than 3 hours, I wouldn’t bother putting up any First Class seats. Install more Extra Legroom Seats instead. Passengers can pay a modest fee for it and free for elite status passengers. Executive Platinum and Platinum Pro status passengers need to have something more to replace free upgrades. Perhaps a free warm meal. In addition, Execitive Platinum status to be given access to Admiral club for domestic flights. Otherwise, AA is likely to lose valued loyalty customers.
And the different complimentary upgrade windows… clearing as early as 100 hours before for you and a companion. What a farce. The revenue management department doesn’t release the seats until boarding begins unless there is a zero percent chance first class will not sell out. If seats are available, you think you would clear – eg thats why its a perk.
I also just had a first happen to me on a Denver to Chicago flight. My wife and I (both EP’s and on the same reservation) were listed as 1 and 3 on the upgrade list. Only two seats available. I thought we would snag both seats because of the first spot and two people on the reservation. But we only got 1 spot and the second on the list got the second spot. Maybe I misunderstood how that was supposed to work. Any insights?
When a ‘free’ (sic) upgrade is experienced as ‘meh’, one might not complain about it. Got what you paid for.
When one pays full-freight for ‘premium’ service, the expectations are whatever their marketing says they should be, so when it’s experienced as ‘meh’, it will attract complaints and degrade the LTR/NPS.
Good luck with that.
And this is why as a million miler that I no longer fly AA exclusively. AA can’t hire a competent CEO if its life depended on it. They consistently rate at the bottom of the pack in the Freddie’s and other surveys. Let’s see how they are doing at the end of 2026 and whether or not isom is still in the job.
I finally must face the fact that putting in that extra effort to maintain my Aadvantage Executive Platinum status no longer makes sense. The days of using miles to upgrade or to hope for automatic upgrades from coach are long gone. Without those upgrade opportunities, where are my tangible benefits from my elite status? Free bags? Priority boarding? Upgrade to main cabin extra? Those are all good but available at a much lower elite status level. The only other truly valuable elite bonus is gaining access to the better business and first lounges.
For the occasional leisure traveler this is probably a good thing, as before domestic first class was way overpriced and now available at a reasonable price. For the business traveller not so good.
Thank you Mr Leff for your article and all the commnets it has generated.
At 78 years of age AA’s actions makes me realize I’ve outlived my opportunity to enjoy the lovalty I’ve shown them for almost 50 years. Yes, it’s a business but . . . so many of today’s CEOs are not much more than glorified/overpaid bean counters. So Delta, UA, SWA, Alaska, you have an opportunity to step up and show the customer you understand the concept of loyalty and that it still counts for something.
Goodbye AA and goodbye Citi. Hello options that can win my loyalty!
For Thirty years I have worked my points and flyer miles and been loyal to a single program..Often paying more than the best price of the day with other comparable airlines..but for some years, everything is getting reduced. Less rewards from credit cards, less value when transfering points to miles, increasing pricing and less value when purchasing a ticket with flyer miles. It’s a triple whammy. I am at the point where I will no longer support a flyer program and simply take the cheapest flight available. There appears to be no value in being loyal.
I quit using my AA Mastercard for precisely this reason. Your points aren’t worth crap.
What is your point, sir?
Unfortunately, AA has, over the last 10 to 20 years, at least, moved from a transportation company to a sales and marketing company. I doubt Isom know when a flight to Paris is five hours late but I absolutely guarantee he knows if the sales function on the website is down for even 30 minutes. Simply put, transportation, to the current AA management is merely a inconvenient and troublesome side operation of selling everything and anything you can whether or not it will actually ever occur. If they happen to get you someplace anywhere near on time, great. If not, maybe they’ll reschedule you in a day or two and if really, really lucky they will give you a voucher for the Budget Inn 40 miles from the airport even if the hotel shuttle stopped running an hour ago. Oh, by the way, sorry, Admirals Club is closing you can’t stay here until the morning.
Just when I think Isom can’t go any lower……….I’ve stood by AA for decades, I’ve earned EXP status for over a decade. This AAvantage Program should change its name to The DisAAdvantge Program. Pilots are given First Class Seats over Elites that have paid $$$$$$ for earned status and the Systemwide Upgrades are useless. The only time I can use these is on short haul flights example DFW / MEM . I’m tired of being treated like I’m getting a free ride. I’ve always said every airline has its issues, but AA is now the biggest issue and thanks to ISOM, it’s time to seriously make a change and if the BOD won’t make a change in Leadership, I will sadly walk away from AA and take my companies business to either DL or UA . WAKE UP AA BOD
American Airlines CEO Celebrates Taking Away Free First Class Upgrades — Says Customers Will Pay
by Gary Leff on May 28, 2026
American Airlines CEO Robert Isom enthusiastically cheered the end of first class upgrades.
**GUESS WHAT MR. ISOM, THIS FREQUEST FLYER, (SINCE 1982) ENTHUSIASTICALLY CHEERED THAT I WILL NO LONGER SEEK STATUS WITH AA AND WILL NO LONGER BE LOYAL TO AA.
It was a crazy that Isom thinks loyalty is from a credit card. Not everyone can do that. Flying for work means you use that card. Actual flying flights and miles should be the loyalty barometer. At least a minimum of sitting in a seat to get priority!¡! Now they take away upgrades, what his this guy thinking. When you fly for work every week for 20+ years, you can’t just buy that seat up front.
Isom is a dis-connected idiot!¡!
Isom is a fool. I am glad that I retired before this took place. I was top level for over 20 years and enjoyed upgrades about 80% of the time. Most companies frown on expensing upgrades and it will get costly out of your own pocket. So much for loyalty.