American Airlines revamps its loyalty program as the travel boom prompts airlines to get pickier about perks
Airline elite status… just got harder to score. Yesterday, American Airlines rolled out big changes coming to its loyalty program next year that include upping the cost of elite status. Notably, American says its loyalty program, AAdvantage, is the largest in the industry. In addition to the price bump, American plans to cut some lower-end rewards:
- Wave goodbye: American’s ditching its MileSAAver and AAnytime programs, which let passengers swap miles for tickets at a discounted rate. Instead, American said it would offer “web specials."
- Say hello: In March, fliers will need 40K loyalty points to qualify for gold status, up from 30K. Gold fliers are the bottom rung of the AAdvantage status ladder, getting perks like seat changes and priority check-in.
Free pinot in the lounge… better get in line. Loyalty programs were a buoy for airlines during the pandemic as companies lowered status requirements to lure customers. But as travel demand takes off again (and airfare hits record levels), more fliers are turning to travel cards for cushiony perks like lounge access. For some airlines, those perks have proved a little too popular:
- Last month, Delta said its SkyMiles members must have elite status to buy airport-lounge memberships as its clubs fill up. Meanwhile, next year its highest-tier Diamond members will have to spend 33% more to keep status.
- Alaska Airlines will start limiting lounge access for first-class passengers based on how far they’re traveling.
Exclusive perks mean exclusive prices… The airline industry is finally expected to return to profitability next year after a three-year pandemic slump. With over a quarter of Americans signed up for travel-based credit cards, airlines could raise the bar for gaining status — and perks — even higher in the future.