This week, American Airlines was one of a plethora of US carriers that raised fees for checked bags by 10%-33%. But that wasn’t all it did to make flying worse for its customers; it also completely nerfed benefits for elite members flying basic economy fares.
In a press release yesterday, American announced multiple changes to basic economy fares:
- Checked bags will cost an additional $5 versus the charges when flying regular economy
- Starting 5/18/26, basic economy tickets will no longer be eligible for systemwide upgrades, cash upgrades, upgrades using miles, or complimentary elite upgrades
- Also beginning 5/18/26, basic economy tickets will no longer be eligible for complimentary seat selection
- These restrictions will also apply to elite members from other oneworld airlines
Quick Thoughts
As a reminder, basic economy ticket fares were already restricted from earning Loyalty Points or redeemable miles. Now, they’re also excluded from any upgrades or seat selection, and checked bags are more expensive to boot.
This more or less makes AA’s basic economy fare policies equivalent to United’s and Delta’s, though ironically even more punitive than what we usually think of as “low-cost” carriers like Frontier and Spirit.
These changes stink for American elites, as purchasing a basic economy ticket now voids most status benefits. AA wants to reward you for your loyalty, but more than that, it wants you to buy higher-priced main economy tickets. Once you’ve spent enough or flown enough to generate elite status, you still have to spend more on future flights in order to enjoy the benefits that status generates.
I’ll be interested to see what the effect of this is going forward for American and the other large carriers. Increasingly, the benefits that apply to your experience in the air have less to do with the status you have and are more closely tied to the fare that you pay or the credit card you have. Will elite status, and the effort it takes to earn it, remain the behavior-driving carrot that it’s historically been?
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So what’s the point of AA Gold now? To get a choice of nice seat when I pay more to get the more expensive economy ticket but not so much I just pay for the main cabin extra seat outright? Imagine flying 1,000,000 miles for such a privilege. Dang, and one free bag just like I would have gotten back in 2000 flying any fare, wow, impressive.
For the first time in 10+ years, I dropped to Gold this March. I bring at least 2 other passengers with me each time I fly (which is part of the reason I book basic econ). But the value just isn’t there with AA anymore. Thank heaven I have a couple of other options when flying my most common route (and thank heaven – for now – for SW Companion Pass).
As loyal status customers we are no longer a value to AA. When purchasing with points, you are forced into basic economy or business even though other premium seats are available. So I’m sure many will take their business and loyalty to anyone else who has a lower fare vs loyalty to one brand, I know we will!
As an Executive Platinum in an AA captive hub (CLT), I am not upset by these changes.
Of course it’s never fun to see a devaluation to one’s benefits. But this could have been much worse.
First, AA is giving reasonable notice. This change won’t affect any tickets purchased before May 18. So I can avoid these changes by booking before then.
Second, the BE policies still aren’t as bad as others. Notably, unlike United or the LCCs, there’s no charge for a carry on bag, whatever one’s status. (Given this, I’d advise AA BE flyers without status to pack a bag just small enough to meet carry on requirements. Odds are you’ll be forced to “gate check” it–but when that happens, you’ll effectively have avoided the increased baggage fee.)
Third, their often very reasonable cheapest award flights still book to economy main (unlike DL.) So this isn’t devaluing award ticket redemption at all.
AA has operational issues, and I wish it were better managed. But I feel fortunate that my airport’s main carrier continues to have easily the most generous FF program among the major carriers.
No one ever gives the CLT the attention it deserves!
I don’t think the notice is reasonable at all. I spent time and money to earn Platinum and they take away most of the benefits barely two months in. I consider this bait and switch. What I would call reasonable notice is anytime before March 1 last year so people could decide whether they still want to work towards the elite for the coming year. Announcing the change in April this year isn’t even reasonable for changes happening next year let along next month.
I think I would prefer they tie it to credit card milestones and eliminate status all together. You just pick what’s important to you. There’s too much breakage in elite status anyway.
In my experience, basic economy is when the 6’ 5” 450 pound guy sits in the middle seat next to you
This is certainly a big middle finger to loyal elites like me who sometimes buy basic economy. I suppose it’s not enough that it’s more of a unicorn than not to find saver business class award space to Europe or Asia with substantial notice, SWU’s to those places are likewise extremely hard to use – particularly far in advance, free domestic upgrades have become much more rare, and now AA is unwilling to provide even basic benefits to high tier elites unless we fork out extra money.
American recently made a public statement where they crowed about the value inherent in AAdvantage and they promised to retain that value. As an EXP for some years, I’m not seeing that at all. I literally can’t remember two things AA has done for me as a customer that was not also directly beneficial to them in the last five years. I’m not out as a loyalist just yet but I’m sure keeping my eyes on the exits.
Can you still get group 5 boarding and free checked bag with an AA credit card?
Basic economy is a fare that is pre-nerfed. I’ve mever bought it and never will.
Good for you… and the airlines.
Why don’t they just hold back seat selection until check-in? That would have been a much more moderate approach.
Overuse nerf much?
maybe they want to pivot away from using other words instead of nerf so they can move the needle more.
You have a better word? Devalue doesn’t exactly have the same zing to it, ya know? But if I say nerf, you would know exactly what I meant.
It’s Nerf or Nothing!
Not quite a complete nerf yet. I assume, you can still bring a carry-on with a basic economy booking, unlike United.