Passengers booking the cheapest tickets with American Airlines have been dealt a significant blow, as the carrier has removed the ability to earn loyalty rewards on its basic economy fares.
An End to Rewards for Budget Fliers
As of Wednesday, travellers who purchase American's basic economy tickets will no longer earn any AAdvantage miles or loyalty qualification points. This marks a sharp downgrade for customers seeking the airline's lowest-priced seats and aligns American with rival Delta Air Lines, which made a similar change in early 2022. United Airlines remains an outlier, still allowing passengers to collect miles on its equivalent cheapest fares.
The move means flyers hoping to accumulate miles towards free flights, seat upgrades, or partner hotel discounts must now pay a higher fare to move up to the next ticket tier. The decision has sparked considerable anger among customers on social media platforms, with many criticising the policy as unfairly targeting less affluent travellers.
Industry Shift Towards Premium Passengers
American first introduced its no-frills basic economy option in 2017 to compete with ultra-low-cost carriers like Frontier and Spirit. Initially extremely restrictive—forbidding even a carry-on bag for the first ten months—the airline gradually added minor perks like free snacks and, crucially, the ability to earn frequent flyer points.
However, this latest reversal is part of a broader industry trend. Airlines are aggressively steering customers towards higher-priced fare classes. This strategy comes during a blockbuster earnings year for the sector, driven largely by high-income Americans splurging on first-class tickets and luxury destinations.
"We routinely evaluate our fare products to remain competitive in the marketplace," an American Airlines spokesperson told the Daily Mail, emphasising that basic economy customers would retain benefits like one free carry-on, snacks, and in-flight entertainment.
Wider Consequences for Budget Travel
The focus on wealthier clientele has led major airlines to slash unprofitable domestic routes. Delta plans "surgical" cuts to US flights, United is trimming 4% of its domestic schedule, and JetBlue is also reducing services. Meanwhile, budget airlines that depend on cost-conscious flyers are facing severe strain. Spirit Airlines filed for bankruptcy for the second time in less than a year, and Avelo Airlines has retreated from its largest markets.
For the everyday traveller, the landscape is becoming increasingly divided. As one disgruntled flyer lamented on Reddit regarding American's policy shift: "I'm getting tired of everyone coming down on us peeps in the middle and working class. It's unchecked greed." With one-way basic economy fares found for as little as $90, the cost of that cheap ticket now includes forgoing any progress towards future rewards.
