Members of American Airlines’ (NASDAQ:AAL) loyalty program will have to spend more to earn elite status next year, part of a slew of changes that the carrier announced Thursday.
Starting in March, AAdvantage members will need to earn 40,000 so-called Loyalty Points to earn Gold status, up from 30,000 in the current earning year. Gold is the lowest elite tier of American’s program, and it comes with perks like free upgrades — when those seats are available.
Media reports say the airline will also get rid of MileSAAver and AAnytime awards, two categories to redeem frequent flyer miles for tickets, at set minimum rates. Instead American will feature its “Web Specials,” with miles requirements that will change based on demand.
“Since we introduced Web Specials a couple years ago, our members have gravitated toward those fares,” a spokeswoman for the airline said. “We’ll continue to keep the award chart because our members value the guidance of a chart to help make award opportunities easier to understand.”
Airlines allowed loyalty program members to hold on to their elite statuses during the pandemic when travel demand dried up. The programs were a lifeline for airlines during the COVID-19 crisis since carriers make money when travelers earn miles through rewards credit cards. Airlines were also able to raise billions in debt backed by these lucrative programs.
AAL sank 35 cents, or 2.6%, to $13.00
