Tag Archives for american airlines aadvantage.
Fresh on the heels of naming a new Chief Customer Officer, American Airlines has named a new head of the AAdvantage frequent flyer program. Scott Long moves over from investor relations to become Senior Vice President of AAdvantage.
The American AAdvantage account activity page has been redesigned. Tiles are gone, and there’s a proper transactions list now and those transactions are sortable, searchable, and filterable.
American Airlines held its Investor Day on Monday afternoon. There was a surprising amount about the AAdvantage program in the discussion, in addition to what you’d expect about airline strategy.
We can expect to see some changes in how miles are awarded (more miles), new redemption options, and better redemptions for members with status. And there’s an explicit commitment not just to defend the value of their miles, but to ensure their currency provides greater value per mile than competitor airlines and even banks do.
American has updated the AAdvantage terms and conditions to now say that, though they gave advance notice of program changes in 2022 and 2023, they have no obligation to do so in the future. They’ll specifically eliminate or change benefits without notice. And if your account is hacked they don’t have to restore your miles.
After making a roundtrip booking you won’t be able to go back and see online how many miles the outbound and return segments are worth separately. You can find out by calling. But there’s a clear amount of residual value that the return portion of your award ticket will have after you’ve flown the outbound, and this will be used towards any changes you need to make.
A reader, Tommy, reached out surprised by American Airlines charging 250,000 miles for a business class award to Tokyo on a flight the next day with plenty of seats available. I’ve flagged that, though American’s new Flight Awards chart that shows ‘starting at’ pricing is supposed to give members an idea of what to expect, for international business class especially the price American is asking for awards often would make even Delta blush.
But that’s not all you need to know.
American Airlines offers some nuggets which provide insight into the AAdvantage program, buried in this SEC filing which is over 200 pages long (plus attachments). The biggest takeaway is that fewer seats on American Airlines are filled with passengers redeeming miles than at Delta or Southwest.
When laying out the reasons why American Airlines devaluing AAdvantage program could be bad for its business I noted financial disclosures they made to investors when raising debt backed by their loyalty program.
Taking their self-reported 52% operating margin for the program, I backed into what it cost for American Airlines to ‘produce’ a frequent flyer mile.
While speaking with American AAdvantage Managing Director Heather Samp about changes to status qualifying and benefits for 2023, I asked about changes to award redemption. I wasn’t expecting to get an answer. She was more forthcoming than I expected!
American Airlines is making several changes to status-earning and adding milestones at which you’ll receive additional benefits for 2023.
They’re also removing the flight requirement to earn milestone benefits; increasing the Loyalty Points required for Gold status, while leaving all other levels the same; lifting the cap on the number of miles you can earn for a ticket; and changing mileage-earning on basic economy tickets. It’s also going to take more Loyalty Points to earn choice benefits for Platinum Pro and Executive Platinum members.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
