Skift Take
American isn't going as far as Delta or United did, but its changes are in line with the industry shift to measuring loyalty in dollars spent, not miles flown.
American Airlines announced today that it would re-invent its AAdvantage loyalty program to offer passengers a hybrid system that rewards loyalty and offers redemption based on both miles flown and the cost of tickets.
American Airlines invented the travel loyalty program, so when its executives make changes to its AAdvantage program, it's more significant than an update to a program like Southwest's RapidRewards. American is the last of the legacy carriers to adopt a shift in loyalty policy that began with Delta Air Lines in early 2015. Skift first reported on on the new AAdvantage plans last week.
The changes will take effect "sometime in the second half of 2016, but that does not mean July 1," said Suzanne Rubin, president of AAdvantage, responding to questions from reporters and analysts during a conference call Tuesday.
The major change is that members will begin earning award miles based on the price of the ticket purchased (base fare plus carrier-imposed fees, excluding government-imposed taxes and fees) and that member’s status level. Members will receive five miles for every U.S. dollar spent on the base fare and carrier-imposed
