AIRLINES & ALLIANCES

American Airlines Stops Awarding Miles on Basic Economy Tickets

American Airlines

20 December 2025

American Airlines has quietly made a significant shift in its loyalty strategy: customers flying on basic economy tickets will no longer earn AAdvantage miles or elite qualifying credit. The change, first flagged publicly by aviation watcher JonNYC on X, marks another step in the airline industry’s recalibration of what loyalty benefits are worth—and to whom.

While the move was not announced through a formal press release, updated fare rules confirm that American’s most restrictive tickets now exclude mileage and status accrual entirely. The decision aligns American more closely with Delta Air Lines and further sharpens the divide between price-driven travel and loyalty-driven engagement.

What Changes for American Airlines Customers

Basic economy tickets are designed to be the lowest-priced option and already come with notable limitations. On American Airlines, these fares:

• Do not allow free changes or refunds

• Do not permit advance seat selection

• Board later than most other fare classes

With the latest update, they now also do not earn redeemable miles or elite status credit.

However, American has preserved one notable exception: customers with elite AAdvantage status traveling on basic economy tickets will still be eligible for domestic upgrades, when available. This maintains a degree of recognition for existing loyal customers, even when they purchase down-market fares.

Competitive Context: Delta, United, and Southwest

American’s move mirrors a similar decision by Delta Air Lines, which previously announced that passengers flying on its Delta Main Basic fares would no longer earn Delta SkyMiles. Delta framed the policy as a way to more clearly differentiate its product tiers and reward customers who opt into higher-value fares.

United Airlines, by contrast, continues to allow MileagePlus members to earn miles on basic economy tickets—but with a trade-off. On most United basic economy fares, passengers are not allowed a full-size carry-on bag, a restriction that has drawn criticism but preserves mileage earning as a loyalty hook.

Southwest Airlines offers yet another variation. In 2024, the carrier introduced its first true no-frills basic fare. These customers board last, receive seat assignments at check-in, and earn Rapid Rewards points at a reduced rate, rather than being excluded from earning altogether. This approach preserves participation in the loyalty ecosystem, albeit at a lower level.

A Look Back: American’s Earlier Reversal

Notably, this is not American Airlines’ first attempt at tightening basic economy restrictions. When the carrier initially launched basic economy fares, it barred those customers from bringing full-size carry-on bags—only to reverse the policy in 2018 after customer backlash and competitive pressure.

The current change suggests that American believes the market is now more accepting of sharply tiered products, especially in a post-pandemic environment where demand has been strong and travelers have become more accustomed to “unbundled” pricing.

The Global Loyalty Organisation Perspective

From the Global Loyalty Organisation (GLO) standpoint, American Airlines’ decision reflects a broader industry trend: loyalty programs are increasingly being repositioned as premium engagement tools rather than universal incentives.

Historically, earning miles—even in small amounts—served as a psychological anchor that encouraged repeat behavior and brand attachment. Removing mileage accrual from basic economy fares fundamentally shifts that relationship. Instead of inviting entry-level customers into the loyalty ecosystem, airlines are signaling that loyalty must be “earned” through higher spend, not just frequency.

GLO analysis highlights three key implications:

1. Loyalty Becomes Spend-Centric, Not Travel-Centric
   Airlines are reinforcing the idea that value to the airline—not just seat occupancy—determines access to rewards. This aligns with the growing importance of co-branded credit cards and premium cabins in loyalty economics.

2. Basic Economy Is Repositioned as a Commodity Product
   By stripping out miles and status credit, airlines are treating basic economy as a transactional offering rather than a relationship-building one. This may increase short-term revenue optimization but risks long-term disengagement from price-sensitive travelers.

3. Elite Status Is Protected, Entry-Level Loyalty Is Not
   Allowing elite customers to retain upgrade eligibility on basic economy fares underscores that airlines are prioritizing retention of high-value members over nurturing future ones.

While the policy may encourage upselling to higher fare classes, it also opens the door for competitors—or alternative loyalty ecosystems—to capture disengaged travelers. Credit card issuers, hotel programs, and multi-brand coalition loyalty platforms may benefit as travelers look elsewhere for consistent reward earning.

From a global loyalty strategy perspective, GLO notes that removing all earning can be more damaging than reducing earning. Programs like Southwest’s, which maintain reduced accrual, still keep customers psychologically invested.

American Airlines’ decision to end mileage earning on basic economy tickets is more than a fare rule adjustment—it is a clear statement about how the airline values loyalty. As competitors take varying approaches, the industry is entering a new phase where loyalty is less inclusive, more segmented, and increasingly tied to profitability.

Whether this strengthens long-term customer relationships or accelerates loyalty fatigue among casual travelers remains a key question for the future of airline loyalty worldwide.

Source: GLO