What to Know About American Airlines Reward Changes

Collecting miles and loyalty factors with American Airways will quickly change into considerably more durable, with the provider asserting on Tuesday adjustments to its AAdvantage rewards program that restrict how clients can earn frequent-flyer factors.

“We need to make it extra handy for purchasers to benefit from the worth and magic of journey,” American Airways’ chief business officer Vasu Raja stated in a press release. “Not solely does reserving instantly with American present the very best expertise, it is also the place we provide the most effective fares and it is most rewarding for our AAdvantage members.”

Learn Extra: How Much Are American Airlines Miles Worth?

The provider stated in a press release Tuesday that tickets issued from Could 1 onwards can be topic to the brand new coverage. Right here’s what to know: 

How do you retain incomes factors?

Beginning in Could, most clients will solely be eligible for AAdvantage miles and Loyalty Factors in the event that they guide instantly with American Airways and eligible companion airways, or by “most popular journey businesses,” which the airline stated it can reveal in an inventory in late April. 

These shopping for primary economic system tickets will face much more restrictions, solely having the ability to earn miles by reserving instantly with American Airways or companion operators.

However the replace within the rewards program is not going to have an effect on AAdvantage Enterprise members or contracted company vacationers, who stay eligible for miles and factors irrespective of the place they guide their tickets.

In the meantime, AAdvantage members also can proceed incomes miles and factors whereas purchasing, reserving inns, and registering for occasions by companion platforms.

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This isn’t the primary time American Airways has made adjustments to its loyalty program. Final yr, the provider raised the threshold for its members to achieve the Gold standing, which guarantees perks like selective free upgrades.

Modifications to checked baggage charges

American Airways has additionally raised charges of checking in a bag on home flights to $35 when bought on-line—up from $30 beforehand—or $40 when bought on the airport. A second checked bag will value $45, up from $40 beforehand. The brand new costs will apply to tickets booked on or after Feb. 20.

That is the primary time in additional than 5 years that American Airways has adjusted its bag charges—and comes amid yearslong value changes by different airways. In January, Alaska Airways elevated the payment for passengers’ first checked bag to $35 from $30. Bag-check charges have been rising throughout varied airways over the previous few years, with a wave of bag fees increases in 2018, together with JetBlue Airways, Air Canada, and WestJet, which all deciding to cost $30 for checked luggage. Jetblue further raised its fee to $35  from $30 in 2020.

Main U.S. airways made a complete income of $7 billion in baggage fees in 2022, in response to the Bureau of Transportation Statistics. Charges like these  turned the topic of a Senate panel investigation in November amid complaints that clients are sometimes blindsided by these prices in the course of the buying course of.

American Airways stated its new adjustments are partly being pushed by rising prices. 

“Gas has gone up fairly a bit. That’s a giant element of our prices after we’re carrying luggage,” Scott Chandler, American Airways’ vp of income administration, told USA Today.

The adjustments is not going to have an effect on AAdvantage members and American Airways bank card holders, who get complimentary checked luggage. Prospects who buy premium cabins and active-duty U.S. army personnel can even stay eligible totally free checked luggage.

American Airways’ calculation of additional prices for chubby baggage can also be altering. The most recent adjustments introduce a $30 payment for luggage which are as much as 3 lbs or 3 inches over the restrict. Something extra, and the prevailing prices, which begin at $100, will kick in. 

The provider can also be capping its outsized baggage restrict to 115 linear inches, in addition to banning objects like javelins, pole vaults, and hold gliders from April 17 onwards.

As for vacationers bringing their pets, carry-on pet charges for tickets bought on or after Feb. 20 have been raised to $150 per kennel, up from $125.

Why all of the adjustments?

The changes to American Airways’ rewards standards come as airways push for direct gross sales to clients, as an alternative of counting on journey brokers who’re usually paid a fee. About 60% of American Airways’ ticket gross sales are at the moment made instantly by the airline, Chandler instructed ABC Information.

In the meantime, the value changes come as U.S. carriers deal with falling domestic airfares, that are within the subsequent few months anticipated to sink decrease than pre-pandemic ranges.

In January, American Airways additionally announced changes to spice up sign-ups to its loyalty program, by limiting advantages, comparable to entry to premium lounges and the flexibility to place flights on maintain for as much as 24 hours, American AAdvantage members solely.