ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

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.

More on Market Realist:

Robert Kiyosaki predicts the ‘best and safest’ asset that is ‘going to the moon’ in 2026

Instacart to pay $60 million to settle claims it deceived customers with false advertising

Dietary supplement recalled after FDA flags presence of ingredients that could prove fatal

MORE ON MARKET REALIST
A Michigan couple’s viral membership photo struck a chord online as shoppers shared decades-old stories featuring their kids and even pets.
Mar 16, 2026
A shift to electronic payments is slowing refunds for some filers, even as the IRS grapples with staffing cuts and a heavy tax season workload.
Mar 16, 2026
The warehouse retailer is urging customers not to consume these ready-to-eat meals sold earlier this month
Mar 16, 2026
The product was distributed in several but no illness has yet been reported.
Mar 14, 2026
While most people disagreed with what the mall did, there were some who understood the reason.
Mar 14, 2026
People are seemingly having a hard time saving apart from their retirement funds.
Mar 14, 2026
“These people are working and contributing and helping to reduce the debt and deficit,” an economic expert said.
Mar 14, 2026
As per a provision in US laws, the IRS had no right to levy penalties in the pandemic years.
Mar 14, 2026
The US had sanctioned Russia heavily over its military exercise in Ukraine.
Mar 14, 2026
While gas prices have jumped, diesel prices have skyrocketed across the country, averaging at $4.78
Mar 13, 2026
Last year, Buffett stepped down as the CEO of Berkshire Hathaway.
Mar 13, 2026
Many who feel financially behind are embracing “financial nihilism,” placing bets on high-risk options instead of traditional investing.
Mar 13, 2026
It was one of the rarest instances in the show in which a contestant had won two cars in one episode
Mar 13, 2026
Housing search data flags a shift in buyer sentiment as Californians look beyond Las Vegas for cheaper housing.
Mar 13, 2026
The company is doing whatever it can to stay ahead of its competitors in the field of AI.
Mar 13, 2026
Industry leaders warn that the Iran conflict could push fertilizer costs higher and eventually drive food inflation.
Mar 13, 2026
This could lead to domestic migration of the wealthy from the state before the law takes effect
Mar 13, 2026
Karoline Leavitt says it won’t affect married women, but critics argue name-change documentation could create new barriers.
Mar 13, 2026
As regulators tighten rules and refineries shut down, the Golden State, also known as the ‘fuel island’, grapples with extremely high gas prices.
Mar 12, 2026
The answer isn't clear yet, but early signs point to his policy backfiring in a bad way.
Mar 12, 2026