American Airlines just yanked miles and loyalty points from Basic Economy tickets, hitting millions of hardworking Americans with a holiday-season Grinch move that prioritizes corporate profits over loyal customers.
Story Snapshot
- Basic Economy bookings on or after December 17, 2025, earn zero AAdvantage miles or Loyalty Points, ending a key perk for budget travelers.
- Millions of AAdvantage members, including families and small businesses, face higher effective travel costs without rewards accrual.
- Policy reversal amid high fuel costs boosts airline revenue but erodes customer trust in loyalty programs started in 1981.
- Customer backlash surges on social media, echoing past industry moves by United and Delta.
Policy Change Takes Effect
American Airlines implemented the change for all Basic Economy tickets purchased on or after December 17, 2025. Previously, these lowest-fare tickets accrued AAdvantage miles and Loyalty Points, a benefit aligned with the program’s 2021 revenue-based overhaul. The airline’s website now states clearly that such fares earn no rewards. This shift affects domestic and international routes, distinguishing it from earlier restrictions like no seat selection. Existing bookings before the date remain grandfathered, but new ones deliver zero value toward elite status or free flights.
Historical Context of AAdvantage
American Airlines launched AAdvantage in 1981 as a pioneering frequent flyer program. It evolved with Loyalty Points in 2021 to simplify earning across flights, credit cards, and partners. Basic Economy, rolled out industry-wide around 2017-2018 to counter low-cost carriers like Spirit and Frontier, gained miles-earning capability by 2023-2024 to draw value-conscious flyers. Basic Economy now represents 20-30% of major U.S. airline bookings. This December 2025 reversal responds to post-pandemic recovery pressures, high fuel costs, and yield management needs, undoing recent inclusivity efforts.
Stakeholders and Customer Impact
AAdvantage boasts 140 million members, with millions booking Basic Economy yearly. Budget travelers, families, and small businesses suffer most, facing slower status progression and no path to free upgrades. CEO Robert Isom and the revenue team drive the decision to maximize profits by nudging flyers toward pricier fares. Credit card partners like Citi and Barclays see slowed growth from reduced miles appeal. Travel agencies such as Expedia note potential booking shifts. Customers hold limited power but can switch carriers, fueling social media pushback from influencers like The Points Guy.
Short-term, loyalty uptake in Basic Economy may drop 10-20%, sparking frustration and booking pauses. Long-term risks include churn to competitors, eroding AAdvantage’s market share despite projected $1-2 billion annual revenue gains for American Airlines from forced upgrades. Small businesses lose on non-earning group travel, while frequent flyers grind harder for perks.
Industry Precedents and Expert Views
United Airlines cut Basic Economy miles in 2022 before partial reversal, and Delta restricted them earlier. American’s broader move spans all routes, unlike JetBlue’s unrelated 2025 partnership loss. Aviation analysts label it a “perk death knell,” expecting limited backlash since budget buyers prioritize price. Rewards experts call it holiday greed, urging boycotts. Pro-airline views frame it as fair revenue management; critics see trust erosion. Consensus holds budget segments show low loyalty anyway, but the timing amplifies anti-consumer perceptions amid DOT fee scrutiny.
Sources:
American Airlines Just Slashed A Major Perk From Basic Economy Tickets
American Airlines Grinch Move: The Death of Basic Economy Rewards
Millions Affected as Major Airline Ends Advantage Miles Program on Basic Economy Tickets
