An American Airlines Airbus 321 sits on the gate at Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia, on July 23, 2023.
Daniel Slim | AFP | Getty Images
First things first: American Airlines is not changing the necessities to earn elite status on the airline in the approaching earning yr.
Those thresholds are typically top of mind for frequent flyers as airlines have been tweaking their loyalty programs lately as travel demand surges and ranks of elites swell.
And while American increased the edge to earn its lowest level, Gold, for the 2023-2024 earning yr ending Feb. 29, the carrier won’t move those needles for the subsequent earning period. Elite status on airlines rewards big spenders with perks like complimentary upgrades and free checked bags.
American is making a bunch of changes, announced Tuesday, that may extend some services solely to AAdvantage members.
Here’s what’s changing:
Under this system changes, only American AAdvantage members will give you the option to fly standby for domestic flights without paying a fee, to carry a flight for twenty-four hours before booking, or purchase one-day passes to its Admirals Club lounges or Flagship lounges. Currently, all customers can access those services.
“Just being a member is a standing,” said Scott Chandler, American’s senior vp of loyalty and revenue management.
AAdvantage members will even give you the option to make use of trip credits for six months longer than nonmembers and can give you the option to get a partial trip credit when canceling restrictive basic economy tickets, in the event that they pay a fee.
The changes highlight American’s give attention to getting more customers to join its loyalty program. These programs generate billions of dollars a yr for airlines. Delta Air Lines last yr said it could start offering free Wi-Fi on board for members of its SkyMiles frequent flyer program.
Loyalty programs were a lifeline for airlines throughout the Covid pandemic when travel slowed to a trickle. Carriers earn money when customers spend on co-branded or other rewards bank cards, selling frequent flyer points to banks, no matter what customers are spending on, from flights to latest countertops.
American, United and Delta have all recently overhauled their loyalty programs to reward big spenders, with passengers earning more points and elite status based on how much they spend, not how far they fly.
Carriers have been grappling with a surge in elite travelers, repeatedly increasing the necessities to earn status, and tweaking advantages. A part of that was on account of airlines allowing customers to carry onto their status throughout the pandemic, though they weren’t traveling.
Delta last yr walked back a few of its changes, including stricter limits on access to its popular airport lounges after customer complaints. All three carriers are constructing larger airport lounges to accommodate more people.
American also said it’s going to start allowing customers to earn miles for paying for cabin upgrades and allow them to redeem their miles for upgrades on partner airlines. For patrons striving for elite status, the airline will give them bonus loyalty points after they’ve earned 15,000. Gold status, the bottom tier, requires 40,000 loyalty points.
Don’t miss these stories from CNBC PRO:
