American Airlines just stripped away loyalty rewards from budget travelers, forcing customers to pay premium prices or lose benefits they’ve earned for years.
Story Snapshot
- American Airlines eliminates miles and loyalty points for basic economy tickets effective December 17, 2025
- AAdvantage members must now purchase expensive fares to earn previously standard rewards
- Policy change forces budget-conscious travelers to pay significantly more or forfeit loyalty benefits
- American Airlines lost $114 million last quarter despite $13.7 billion in revenue
American Airlines Cuts Rewards for Budget Travelers
American Airlines announced that AAdvantage loyalty program members purchasing basic economy tickets will no longer earn miles or loyalty points.
The policy took effect on December 17, immediately affecting millions of budget-conscious travelers who previously earned 2 miles and loyalty points per dollar spent. This represents a significant devaluation of customer loyalty benefits that working families have relied on for affordable travel rewards.
American Airlines no longer lets basic economy flyers earn miles https://t.co/KgpcLpLzhH
— CNBC (@CNBC) December 18, 2025
Corporate Strategy Penalizes Frugal Customers
The airline’s statement reveals a calculated effort to force customers into higher-priced tickets by removing incentives from budget options. Scott Keyes from Going.com explained that American Airlines seeks a “sweet spot” where basic economy remains available but becomes less attractive to customers who might otherwise choose premium fares.
This strategy effectively punishes financially prudent travelers who seek value while rewarding those willing to pay inflated prices for identical transportation services.
Financial Losses Drive Anti-Consumer Policies
American Airlines reported a $114 million loss in its most recent quarter despite generating $13.7 billion in revenue, indicating poor financial management rather than justified cost-cutting.
Instead of improving operational efficiency or reducing executive compensation, the airline chose to extract additional revenue from loyal customers by decreasing benefits. This approach shifts the burden of corporate financial mismanagement onto hardworking Americans who depend on budget travel options for family visits and business trips.
Industry Trend Hurts Middle-Class Families
Over the past decade, major airlines introduced basic economy fares to compete with budget carriers, initially maintaining some customer benefits while reducing others, such as seat selection and itinerary changes.
This latest move represents an escalation of anti-consumer practices that disproportionately affect low-income families and small-business owners. The policy forces customers into a false choice between paying premium prices or accepting significantly diminished value from their loyalty program participation.
