For years, travelers have pledged loyalty to their airline for the elite status and for the complimentary upgrades that often come with said status. But for American Airlines’ loyalty members, the rewards for that allegiance are about to change.
Beginning August 25, American is halting free upgrades from economy to business class on specific transcontinental and Hawai‘i routes that have a premium economy cabin. Instead, eligible AAdvantage members will be considered for the midtier seats.
“As American Airlines expands its offering of premium economy on more domestic routes, we are streamlining our complimentary upgrade process to deliver a more consistent customer experience,” a spokesperson for the carrier said in a statement.
It’s a change that makes the loyalty program arguably less valuable for many travelers—and raises a larger, more pressing question: What happens to airline loyalty when the perks that made it appealing are put behind a paywall?
“The promise of complimentary first- or business-class upgrades is one of the most alluring perks of achieving airline elite status. Removing this perk from the offering would undoubtedly frustrate many long-time fliers,” Zach Griff, travel expert and founder of travel newsletter From the Tray Table, tells Afar.
He adds, “That said, actually getting a first-class upgrade is much harder than ever. That’s because more and more travelers are paying to reserve the seats they want—and because airlines are savvier at pricing upgrades to get more people to pay for them versus giving them out for free.”
The new structure is pretty straightforward: On eligible North America flights, economy passengers with elite status are eligible for free upgrades to premium economy, which offers a similar onboard experience as domestic first class, albeit with slightly less room and fewer meal options. This still includes chef-inspired dining, complimentary pillows and blankets, larger entertainment screens, more spacious leather seats, and noise-canceling headphones.
Note that American doesn’t offer any complimentary upgrades on international routes. Customers have to pay or use miles to move up.
The upgrade ladder isn’t disappearing entirely, however. It’s just becoming harder—or rather, more expensive—to climb to the top. Only premium economy ticketholders will be eligible for that bump up to business.
The move signals a larger trend in the travel industry and brings American closer in line with United Airlines and Jetblue, which have also added more gatekeeping to their upgrade programs.
This makes Delta Air Lines the outlier—and potentially, the last major U.S. airline to offer the kind of upgrade that truly makes elite status feel worth pursuing. With Delta, even the lowest tier Medallion members—those who have earned status through $5,000 in spending on Delta flights, eligible Delta Vacations packages, and select cobranded American Express cards—can still be upgraded from Delta’s Main or Main Extra Fares to the most premium cabin option available on its domestic flights when space allows. That even includes the luxurious lie-flat Delta One seats.
Ultimately, the shift shouldn’t come as too much of a surprise. Options like premium economy and, more recently, the move to create a stripped-down “basic” business class have become one solution to the expanding demand for premium seats. These in-between products offer an appealing option with more space than economy and better amenities but that’s more accessible for travelers who don’t want to (or can’t) splurge for a pricey business-class fare. And for the airlines offering them, these new tiers give them an opportunity to squeeze even more revenue out of every seat.
According to Henry Harteveldt, president and airline industry analyst at Atmosphere Research Group, American’s policy shift is not unexpected and simply means that economy fliers can’t leapfrog over premium economy seats to the front of the plane.
“American’s change in upgrade policy, while disappointing, is actually something that was long overdue to happen. It standardizes American’s upgrade policy with what it has traditionally done on most flights: Allow a one-cabin upgrade,” says Harteveldt. “This is an industry-standard practice [and] isn’t an earth-shattering policy change. This isn’t the end of loyalty programs. It is, however, the end of a great perk that was fun while it lasted.”
Despite the disappearing reward, ultimately, American continues to offer some of the best redemption rates in the industry with an impressive network of partners, making loyalty and stockpiling points with the airline still an attractive pursuit. American is part of the oneworld Alliance that includes Alaska, Hawaiian, British Airways, Japan Airlines, and Cathay Pacific, among others.
“The ability to redeem your miles at favorable rates remains one of the best perks of its AAdvantage program,” Griff adds.
Maybe the question isn’t whether loyalty programs are worth the commitment. It’s what travelers hope to get in return—and what they’re willing to pay for it.
