American Airlines has slashed loyalty rewards for budget travelers, forcing customers to pay higher prices for tickets as the airline struggles with massive quarterly losses.
Story Snapshot
- American Airlines eliminates AAdvantage miles and loyalty points for basic economy tickets starting December 17, 2025
- Customers must now purchase more expensive fares to earn any travel rewards through the loyalty program
- The airline lost $114 million last quarter despite $13.7 billion in revenue, indicating financial pressure behind the policy change
- The move represents another blow to budget-conscious travelers already facing restricted seating and boarding privileges
American Airlines Cuts Loyalty Benefits for Budget Travelers
American Airlines eliminated miles and loyalty points for basic economy passengers effective December 17, 2025, marking a significant reduction in customer benefits. AAdvantage program members previously earned two miles and loyalty points per dollar spent on basic economy fares.
The airline announced this policy change on December 18, requiring customers to purchase main cabin or higher fares to earn any rewards. This decision directly impacts budget-conscious travelers who rely on accumulating points through cheaper ticket options.
American Airlines no longer lets basic economy flyers earn miles https://t.co/KgpcLpLzhH
— CNBC (@CNBC) December 18, 2025
Financial Struggles Drive Revenue-Focused Strategy
The carrier reported a $114 million loss in its most recent quarter despite generating $13.7 billion in revenue, revealing underlying financial pressures.
American Airlines stated it “routinely evaluates fare products to remain competitive in the marketplace,” suggesting this move is aimed at revenue optimization rather than customer satisfaction. Travel industry expert Scott Keyes noted the airline seeks a “sweet spot” where basic economy remains available but becomes less attractive to potential main cabin buyers.
Basic Economy Restrictions Continue Expanding
Major airlines introduced bare-bones tickets over the past decade to compete with budget carriers, but these fares now carry extensive limitations. Basic economy passengers cannot reserve seats without additional charges, face fees for itinerary changes, and board flights last among all ticket classes.
American Airlines maintains that basic economy customers still receive personal items, carry-on bags, snacks, beverages, and entertainment. However, eliminating rewards significantly reduces the overall value proposition for frequent travelers.
This policy change represents another example of airlines prioritizing profit margins over customer loyalty during challenging financial periods. Budget travelers face increasingly restrictive options while airlines push passengers toward higher-priced tickets to maintain revenue streams.
The timing coincides with broader industry trends where carriers reduce benefits while maintaining or increasing fees, creating additional financial burden on American families already dealing with economic pressures from previous administration policies.
