Well, here’s a shift that numerous American AAdvantage loyalists may not appreciate…
American implements significant alteration to basic economy fares
As noted by JonNYC, American Airlines appears to have just revised its policy regarding basic economy tickets. There hasn’t been any official announcement, but if you navigate to American’s section about basic economy, you’ll now observe the following:
Basic Economy fare tickets purchased on or after 12:00 a.m. CT on December 17, 2025 will not qualify for AAdvantage miles or Loyalty Points. For Basic Economy fare tickets bought on or before 11:59 p.m. CT on December 16, 2025, please visit the AAdvantage Earn page for the airline marketing your flight for more information on the AAdvantage miles and Loyalty Points you can earn.
For reference, until now, American has granted 2x AAdvantage miles and Loyalty Points on basic economy fares, compared to 5x AAdvantage miles and Loyalty Points on standard economy fares. Therefore, previously, the earnings rate on basic economy was decreased by 60%, but now it has been decreased by 100%!
What’s driving American’s changes to basic economy?
Basic economy has emerged as a tremendously valuable strategy for airlines to broaden their customer demographic and maximize revenue from travelers. The aim concerning basic economy is twofold:
- To target a different customer segment that may have traditionally chosen ultra low cost carriers, in order to fill seats
- To render the fare category undesirable, to encourage passengers to select a more expensive non-basic economy fare
It remains unclear whether American’s management is accurate, but I assume the rationale here is that American believes it can persuade engaged AAdvantage members to spend more to avoid basic economy. It’s intriguing to observe how the other two of the “big three” airlines handle this.
Delta does not provide any miles or status qualification on basic economy fares, whereas United offers limited miles and status qualification on basic economy fares. However, for non-engaged travelers, United has by far the most severe basic economy fares among the three airlines, since carry-on luggage is not permitted.
Clearly, I’m not pleased to see reductions in mileage and status qualification across any fare types. However, I’m not convinced that American management is incorrect in its approach here. Will the additional revenue from AAdvantage members upgrading to more expensive fares surpass the lost business from those who are no longer loyal to American?
I suppose American isn’t really in a position to lose customers at this point, although the airline certainly aims to enhance yields.
Final thoughts
American has quietly removed all mileage earning and status qualification on basic economy fares, for tickets purchased as of December 17, 2025. Historically, the airline has provided both AAdvantage miles and Loyalty Points on these fares, marking a substantial strategic shift. With this adjustment, American has now aligned more closely with Delta than with United on this aspect.
What are your thoughts on American’s basic economy alteration?