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American Airlines Ends Miles And Rewards For Basic Economy Tickets

Photo by Forsaken Films / Unsplash

American Airlines will no longer award miles or loyalty points to customers who purchase basic economy tickets, a move that further limits perks for the carrier’s lowest-priced fares.

The policy took effect December 17 and applies to members of the airline’s AAdvantage loyalty program.

Travelers who buy basic economy tickets will not earn miles or loyalty points toward elite status, though they will still receive a free carry-on, personal item, snacks, soft drinks, and in-flight entertainment.

American said the change is part of an ongoing review of fare products aimed at staying competitive. Industry analysts say the airline is trying to discourage customers who could afford higher fares from choosing stripped-down tickets.

Basic economy fares were introduced to compete with budget airlines but already come with restrictions, including limited seat selection, no free changes, and last boarding priority.

The move comes as American reported a $114 million quarterly loss on $13.7 billion in revenue, increasing pressure to protect higher-margin ticket sales.

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