AIRLINES & ALLIANCES

American Airlines Eliminates Loyalty Earning on Basic Economy, Reshaping the Value of the Lowest Fare

American Airlines

January 5, 2026.

American Airlines has eliminated the ability for AAdvantage loyalty program members to earn miles or Loyalty Points toward elite status when flying on Basic Economy fares purchased on or after Dec. 17, marking another significant shift in how major U.S. carriers treat their lowest-priced tickets.

The change further limits the value of Basic Economy for business travelers—particularly those at small and midsize enterprises (SMEs)—and highlights growing inconsistencies across airlines in how deeply discounted fares interact with corporate travel programs and loyalty benefits.

Impact on Managed and Unmanaged Business Travel

Many large managed travel programs already block Basic Economy fares in their online booking tools due to restrictive conditions. These fares are often nonrefundable, difficult to change, and may include additional fees for seat selection, carry-on baggage, or same-day changes.

However, Basic Economy tickets are still used by some SMEs and unmanaged business travelers, particularly those focused on minimizing upfront airfare costs. In some cases, travelers book outside their company’s preferred channels after finding what appears to be a cheaper fare online, not realizing the ticket comes with substantial limitations—or now, no loyalty credit at all.

With American’s policy change, those travelers will no longer earn AAdvantage miles or Loyalty Points toward elite status when flying on Basic Economy, removing a key incentive that previously softened the restrictions of these fares.

Channel-Based Differences Draw Scrutiny

The policy shift has also reignited discussion about American’s distribution strategy and its treatment of customers based on booking channel.

Cory Garner, founder of Garner Advisory and a longtime airline distribution analyst, noted on LinkedIn that American applies different rules to Basic Economy tickets depending on how they are purchased.

“Specifically, direct bookers retain a travel credit less applicable fees upon cancellation. Indirect bookers don’t,” Garner wrote. “The typical airline under a full content commitment or its [New Distribution Capability]-era equivalent wouldn’t have the latitude to try such things. Another proof point that American is operating under few, if any, content commitments at all.”

Garner’s comments reflect broader industry concerns about content parity and transparency as airlines increasingly push direct booking channels while limiting what is available—or changeable—through traditional corporate travel tools and agencies.

How American Compares With Delta and United

American Airlines has removed the ability for AAdvantage members to earn miles or Loyalty Points on Basic Economy fares, fundamentally changing the value proposition of its lowest-priced tickets for all travelers, not just those flying for business.

For tickets purchased on or after December 17, 2025, Basic Economy fares become purely transactional: travelers get a seat and limited onboard benefits, but no progress toward free flights or elite status. The move aligns American more closely with Delta Air Lines’ long-standing approach and leaves United Airlines as the only major U.S. carrier still offering some status credit on its cheapest fares.

What Changed

American Airlines’ update removes the final loyalty incentive tied to Basic Economy:

• No more earning: Basic Economy tickets purchased on or after Dec. 17, 2025, earn zero AAdvantage miles and zero Loyalty Points

• Previous structure: These fares previously earned miles and points at a reduced rate (for example, two points per dollar spent)

• What remains: Basic Economy still includes a free personal item, a carry-on bag, and in-flight entertainment, but no loyalty rewards

The result is a fare designed solely around price, with no long-term value for frequent travelers.

Why It Matters for All Travelers

For leisure travelers, Basic Economy has often been an entry point into airline loyalty programs—especially for infrequent flyers hoping to slowly accumulate miles. With this change, those passengers may find that even repeated trips on American produce no rewards unless they purchase a higher fare.

For frequent travelers, including road warriors and regular leisure flyers, the shift is more consequential. Status earning is now completely tied to buying at least a Main Cabin ticket, making fare class—not just travel frequency—the gatekeeper to elite benefits.

In effect, American is signaling that loyalty is no longer earned by simply flying, but by how much travelers are willing to spend.

Implications for Business and Corporate Travel

The change also reinforces trends already underway in corporate travel.

Many large managed travel programs already block Basic Economy fares in their online booking tools due to restrictions such as limited changes, nonrefundability, and seat assignment rules. Removing loyalty earning further strengthens the case against these fares.

However, some small and midsize enterprises—and unmanaged travelers—still use Basic Economy to reduce costs. For them, the policy removes one of the last justifications for choosing the cheaper fare.

Key impacts include:

• Reduced value for cost-conscious travelers: The loss of status earning removes a benefit that previously offset the fare’s restrictions

• Reinforced corporate policy bans: Programs that already restrict Basic Economy now have clearer justification

• Higher risk for unmanaged bookings: Travelers who book outside company channels may save upfront but lose miles, status, and flexibility—underscoring that the lowest price isn’t always the best value

Channel Differences Add Another Layer of Complexity

The change has also renewed scrutiny of how American treats customers based on booking channel.

Cory Garner, founder of Garner Advisory, noted on LinkedIn that Basic Economy customers are treated differently depending on whether they book directly with American or through third-party channels.

“Specifically, direct bookers retain a travel credit less applicable fees upon cancellation. Indirect bookers don’t,” Garner wrote. “The typical airline under a full content commitment or its [New Distribution Capability]-era equivalent wouldn’t have the latitude to try such things. Another proof point that American is operating under few, if any, content commitments at all.”

For travelers, this means fare rules, flexibility, and now loyalty outcomes can vary not just by ticket type—but by where the ticket is purchased.

How American Compares With Delta and United

American’s move brings its Basic Economy policy closer to Delta’s, but differences remain across the Big Three U.S. airlines:

• American Airlines: No miles or Loyalty Points on Basic Economy tickets purchased on or after Dec. 17, 2025

• Delta Air Lines: Its Main Basic fare also does not earn Medallion Qualification Dollars or miles toward elite status

• United Airlines: Continues to award Premier Qualifying Points (PQPs) on Basic Economy fares based on ticket price, though with strict limitations on baggage, seating, and changes

These variations add complexity for travelers trying to compare fares across airlines—and for corporate programs attempting to standardize policy.

Growing Complexity for Corporate Buyers

As airlines continue to unbundle fares and differentiate benefits by price point and booking channel, the Basic Economy category has become increasingly complex—and risky—for business use.

For American Airlines travelers in particular, the loss of loyalty credit removes one of the last remaining advantages of Basic Economy, reinforcing why many corporate programs discourage or prohibit these fares altogether.

For unmanaged travelers and SMEs, the change serves as a reminder that the lowest fare on the screen may not represent the best overall value—especially when elite status, flexibility, and duty-of-care considerations are factored in.

As airline distribution strategies continue to evolve, transparency around fare rules and loyalty implications is likely to remain a key issue for corporate travel stakeholders.

Global Loyalty Organisation Take: The Bigger Picture – Pushing Travelers Up the Fare Ladder

Industry-wide, the shift reflects a broader airline strategy: use loyalty benefits to nudge customers away from the cheapest fares and toward higher-priced tickets.

By stripping Basic Economy of mileage and status earning, American increases the likelihood that frequent travelers—both business and leisure—will “buy up” to Main Cabin or higher fare classes. That, in turn, boosts revenue per passenger while preserving Basic Economy as a price anchor rather than a value-driven product.

At the same time, the growing divergence in fare rules, loyalty earning, and booking-channel treatment highlights how fragmented airline pricing and distribution have become.

For travelers, the message is increasingly clear: understanding fare details, loyalty implications, and booking channels matters as much as the price on the screen.

Source: GLO