American Airlines Cuts Loyalty Rewards From Basic Economy Fares

American Airlines has sparked widespread customer backlash after announcing a significant change to its loyalty program, removing mileage and status earnings for passengers flying on Basic Economy tickets. Effective December 17, 2025, travelers purchasing the airline’s lowest-priced fares will no longer earn AAdvantage miles or Loyalty Points, a move that reshapes the value proposition of one of the industry’s most restrictive fare categories.

The change directly affects participation in AAdvantage, one of the world’s largest airline loyalty schemes. Under the revised policy, Basic Economy tickets will still allow passengers to fly on American-operated services, but without any mileage accrual, elite status credit, or Loyalty Points that count toward status tiers such as Gold, Platinum, Platinum Pro, and Executive Platinum.

American Airlines said the adjustment is intended to better differentiate fare products and encourage customers to book higher-priced Main Cabin or premium fares. Basic Economy, originally introduced as a response to ultra-low-cost carrier competition, already comes with multiple restrictions, including no free seat selection, limited flexibility for changes, and boarding group limitations. Removing loyalty earnings further narrows its appeal, particularly for frequent flyers who rely on mileage accumulation even on low-cost trips.

Customer reaction has been swift and vocal, especially across social media and frequent-flyer forums. Many travelers argue that the change disproportionately impacts budget-conscious customers and younger travelers who use Basic Economy fares as an entry point into the loyalty ecosystem. Critics also note that American Airlines is moving further than some competitors, which still allow limited mileage accrual on their lowest fare classes.

Industry analysts see the decision as part of a broader trend among network carriers to monetize loyalty more aggressively and steer travelers toward higher-margin products. Loyalty programs have become critical revenue drivers, particularly through partnerships with credit card issuers, and airlines are increasingly using elite benefits and earning structures as levers to influence buying behavior.

The timing of the announcement has also drawn scrutiny. With inflation and higher travel costs already straining household budgets, removing rewards from entry-level fares risks alienating occasional flyers and leisure travelers. Some customers have publicly stated they are reconsidering future bookings with American and may shift loyalty to competing carriers that still offer mileage earning on basic fares.

American Airlines has defended the move as a way to provide clearer choices to customers, emphasizing that travelers who value rewards and flexibility can still earn miles by purchasing Main Cabin tickets or higher. However, the backlash underscores growing tension between airlines’ revenue optimization strategies and passenger expectations of loyalty reciprocity.

As airlines continue refining fare segmentation and loyalty economics, American’s decision could set a precedent across the industry. Whether the backlash leads to policy adjustments—or prompts competitors to follow suit—will be closely watched by travelers and loyalty program analysts alike.