An American Airlines Airbus 321 sits at the gate of Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia, on July 23, 2023.
Daniel Delgado | AFP | fake images
The first is the first: american airlines is not changing the requirements to earn elite status on the airline in the next earning year.
Those thresholds are often a priority for frequent travelers, as airlines have been tweaking their loyalty programs in recent years as travel demand increases and the ranks of elites swell.
And while American raised the threshold to earn its lowest tier, Gold, for the 2023-2024 earnings year ending Feb. 29, the airline won’t move those needles for the next earnings period. Elite status on airlines rewards big spenders with benefits like complimentary upgrades and free checked bags.
American is making a series of changes, announced Tuesday, that will extend some services only to AAdvantage members.
This is what is changing:
Under the program changes, only American AAdvantage members will be able to fly standby for domestic flights without paying a fee, book a flight for 24 hours before booking, or purchase day passes to their Admirals Club lounges or Flagship lounges. Currently, all customers can access those services.
“Just being a member is a status,” said Scott Chandler, American’s senior vice president of revenue and loyalty management.
AAdvantage members will also be able to use travel credits for six months longer than non-members and will be able to earn a partial travel credit when canceling restrictive basic economy tickets, if they pay a fee.
The changes highlight American’s focus on getting more customers to sign up for its loyalty program. These programs generate billions of dollars a year for airlines. Delta Airlines Last year it said it would begin offering free inflight Wi-Fi for members of its SkyMiles frequent flyer program.
Loyalty programs were a lifeline for airlines during the Covid pandemic, when travel was reduced to a minimum. Carriers make money when customers spend on co-branded or other rewards credit cards, selling frequent flyer points to banks regardless of what customers spend on, from flights to new counters.
American, United and Delta have recently overhauled their loyalty programs to reward high spenders, with passengers earning more points and elite status based on how much they spend, not how far they fly.
Airlines have been grappling with a surge in elite travelers, repeatedly raising status requirements and changing benefits. Part of that was because airlines allowed customers to keep their status during the pandemic, even if they weren’t traveling.
Last year, Delta backtracked on some of its changes, including stricter limits on access to its popular airport lounges after customer complaints. All three airlines are building lounges at larger airports to accommodate more people.
American also said it will begin allowing customers to earn miles for paying for cabin upgrades and redeem their miles for upgrades on partner airlines. For customers striving to reach elite status, the airline will give them additional loyalty points after they have earned 15,000. Gold status, the lowest level, requires 40,000 loyalty points.
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