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American Airlines has a major update for budget travelers — and it’s not good news

The airline said that it has made this policy change to be competitive in the market.
PUBLISHED DEC 19, 2025
Representative image of American Airlines flyers. (Cover Image Source: Getty Images | Photo by Justin Sullivan)
Representative image of American Airlines flyers. (Cover Image Source: Getty Images | Photo by Justin Sullivan)

Flying can be expensive sometimes, and a lot of frequent flyers across the country book economy class tickets. Airlines know this and often promise perks to such customers in order to earn their loyalty. Unfortunately, not all good things last forever, and that is what American Airlines passengers will soon realize. In a recent announcement, the airline has done away with one of the most attractive benefits it offered to its basic economy flyers.

Source: Getty Images
Representative image of an American Airlines plane. (Image Source: Getty Images)

A report in CNBC states that American Airlines flyers will no longer be able to earn frequent flyer miles or points toward elite status. These points can help one get upgraded to a higher-priced seat once in a while. The reason why this is happening, as per the report, is that the company wants to be competitive against its biggest competitors. Carriers across the country have been looking for people who are willing to pay more to fly in a luxurious manner.

After the pandemic came to an end, luxury travel saw a boom, and airlines have been cashing in. American Airlines was a little late to the party, which resulted in it falling behind rivals like Delta Air Lines and United Airlines in the luxury travel space. The company did say that they were still going to give their basic economy customers a full host of complimentary services while inside the plane.

Cover image source: Unsplash | Photo by JESHOOTS.COM
Representative image of a person in an airport. (Image source: Unsplash | Photo by JESHOOTS.COM)

“We routinely evaluate our fare products to remain competitive in the marketplace. Customers who purchase a Basic Economy ticket on December 17, 2025, and beyond will not earn AAdvantage miles or Loyalty Points towards AAdvantage status,” it said, before clarifying, “Basic Economy customers will continue to receive one free personal item and one free carry-on bag, free snacks, soft drinks, and in-flight entertainment.”

Basic economy tickets are usually quite restrictive, and that is understandable given their pricing. Customers usually are not allowed to change their tickets without paying a fee, and they’re not even allowed to choose their seats in advance. This might not be the same for airlines across the board, as different carriers have different policies.

Cover Image Source: Unsplash| Photo by Suhyeon Choi
Representative image of people inside an airplane. (Image Source: Unsplash| Photo by Suhyeon Choi)

For example, Delta Airlines follows a similar policy to the one recently adopted by American Airlines. Basic economy customers in Delta do not receive Delta SkyMiles. This is not the case with United Airlines, in which basic economy customers who are its MileagePlus loyalty program members can earn miles on basic economy tickets. However, such flyers are not allowed to bring a carry-on bag on their flights.

American Airlines has a membership system as well, and for basic economy flyers who are members, there is an advantage. As per a company spokesperson, Elite Loyalty members will still be eligible for first-class upgrades on domestic flights if they’re on basic economy tickets.

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