Airline Greed Crushes Loyalty Rewards

Airplane viewed from an empty airport waiting area.
LOYALTY REWARDS CRUSHED

American Airlines strips loyalty rewards from basic economy tickets, punishing everyday travelers with corporate greed amid ongoing fiscal struggles.

Story Snapshot

  • AAdvantage members lose miles and points on basic economy fares starting December 17, 2025.
  • Policy change announced on December 18 forces customers to buy pricier tickets to earn rewards.
  • Airline cites competitiveness but reported a $114 million quarterly loss on $13.7 billion in revenue.
  • Basic economy retains minimal perks like one carry-on and snacks, but no seat selection or changes without fees.

Policy Details and Effective Date

American Airlines ended AAdvantage miles and Loyalty Points for basic economy ticket purchases. The carrier announced the change on December 18, effective December 17.

Previously, members earned two miles and points per dollar spent on regular fares. Now rewards require higher fare classes. This targets budget-conscious flyers who prioritize affordability over perks.

Airline’s Official Statement

American Airlines stated it routinely evaluates fare products for marketplace competitiveness. Basic economy buyers from December 17 earn no AAdvantage miles or Loyalty Points toward status.

Customers still receive one free personal item, one carry-on bag, free snacks, soft drinks, and in-flight entertainment. The policy pushes travelers toward main cabin fares for full benefits, aligning with profit strategies.

Basic Economy’s Evolution and Restrictions

Major airlines rolled out bare-bones basic economy tickets over the past decade to rival budget carriers. These fares bar seat reservations without fees, prevent itinerary changes without penalties, and board passengers last. American Airlines’ update removes loyalty rewards, further diminishing appeal. Travelers seeking flexibility or status progress must upgrade, reflecting industry pressure to upsell amid thin margins.

Scott Keyes, founder of Going.com, explained Americans seek a balance: offer basic fares without luring higher-spending customers. The tweak discourages opting for basic over the main economy, even for an extra $40. This tactic counters revenue erosion from low-fare competition.

Financial Pressures Driving the Change

American Airlines posted a $114 million loss on $13.7 billion in revenue in its latest quarter, per regulatory filings. Persistent unprofitability fuels aggressive fare adjustments.

Loyalty program tweaks aim to boost revenue by converting basic buyers to premium options. Frequent flyers, often middle-class families hit by past inflation, face eroded value on cost-saving choices. Under President Trump’s pro-business climate, such moves highlight corporate survival tactics after the Biden overspending era.

Conservative families value straightforward dealings; this policy exemplifies airline overreach, squeezing rewards from loyal customers. Trump’s economic wins—record jobs, wage growth—contrast with airline woes tied to globalist competition and regulatory burdens. Travelers must now weigh hidden costs more carefully.