Changes to American Airlines FF Program

You can now shop your way to American Advantage status. Historic changes to the nature of “status” in the frequent flyer program.

Much to the dismay of some and delight of others, American has announced a change to their AAdvantage frequent flyer program. Beginning early in 2022, the process of achieving AAdvantage loyalty status will be simpler.

The airline is completely revamping its elite program, and while the benefits themselves aren’t changing, they are making the process of achieving status much simpler. While the carrier has been considering a loyalty program overhaul for some time, the recent changes are, in part, a response to the global pandemic. American Airlines found that while their members were not traveling as much, they still had a very engaged member base, as evidenced by their loyalty program cobranded card activity in other areas. 

Award charts are still in effect, for now

While rumors were circulating with outgoing AAdvantage president Rick Elieson that the existing award charts would be a thing of the past, that will not be happening in the coming year 2022. The program will still have current MileSAAver, AAnytime, and Web Special fares. However, it should be noted that things could change come 2023.

So what exactly are the changes? 

For Starters, the Awards’ Currency Name Change

Current loyalty customers had a say on this one. With such monikers as “Elite Points” and “Status Points,” American ultimately went with the name “Loyalty Points” when referring to award transactions. They relied on the feedback of anonymous customer research throughout the program redesign. It is the implication of the word “loyalty” that officials recognized as being important to its members. 

Heather Samp, managing director of member engagement, says, “For us, loyalty was not really an individual showing that they are better than anyone else, which is maybe notated in the word ‘elite,’ but just rather a better reflection of their interaction with our brand and with our airline.”

A More Streamlined Way to Earn Loyalty Points

Current members were also influential in determining the scale for the amount of Loyalty Points needed to earn status. Previously, the pathway to achieving AAdvantage status was a bit complicated, spearheaded by the fact that members had to spend a designated amount of money over the course of a year while also meeting a threshold number of miles flown or number of flight segments flown.

But beginning January 1st, 2022, with the help of members’ input, the process is much simpler. Now, members will get one loyalty point for each AAdvantage frequent flyer point they earn. Points can be acquired by flying, spending with an AAdvantage or cobranded credit card by shopping online, or dining with AAdvantage partners’ restaurants. They will achieve Gold status with 30,000 loyalty points, Platinum with 75,000 points, Platinum Pro status with 125,000 points, and Executive Platinum Status with 200,000 points. 

American Airlines’ Chief customer officer Alison Taylor said in a prepared statement, “For our loyal members, the message is simple: Earn AAdvantage miles, earn status – whether that’s by flying on American or by spending on everyday purchases.”

Still, members looking to qualify for top-tier status for the first time exclusively from American Airlines flights will have to spend almost 27,000 in travel dollars. That comes out to be an increase of $12,000 when compared to the current plan. 

Another caveat is geared toward the top-tier Platinum Pro and Executive Platinum elite. In order to unlock the additional benefits of these tiers, members will need to fly at least 30 segments on American and its partners during the program year. This could pose a challenge for those members who routinely take 4-5 expensive premium-cabin long-haul overseas trips in any given year. 

The airline’s decision to extend the expiration date to February 2022 for existing levels coincides with plane travel picking up overall, even though business travel remains well below pre-pandemic levels. This has undoubtedly made it more difficult for many business flyers to retain their status. In response to this, American said it will allow AAdvantage members to essentially “double-dip” in January and February, accruing loyalty points for both 2022 and 2023. 

There are Also Changes to the Loyalty Choice Program

The carrier is also revising its formula for qualification to the Loyalty Choice Rewards program. Starting in 2022, AAdvantage members will become qualified for the program if they achieve Platinum Pro status and fly at least 30 segments on either American or a qualifying partner airline. Formerly called the Elite Choice Rewards, the rewards up for grabs under this newly named program include an Admirals Club day pass, systemwide upgrades, and bonus AAdvantage miles.

Samp believes that this new overall approach to earning status will bring more members into the fold. It also in some way changes the nature of the program. It moves away from being a frequent flyer program to a big spender program which also awards points for flying.  This change has been decades in the making. With few exceptions status was always earned by flying, clearly showing what program ultimately stood for. Now you could make even the highest status while stepping onto an airplane.  AAdvantage did not invent the concept, but it was the first great success of loyalty programs. It is not ready to yield to the financial institutions that are now starting to dominate the loyal space.  in its new form AAdvantage is taking on the super cards as go-to loyalty programs of the American consumers. There will be winners and losers. There will be a lot more small business owners and a lot less avid road warriors in the top ranks of the program.  Dallas/Ft Worth area small business owners are the biggest winners. Economy class frequent travellers are probably the biggest losers in this change. AMR is now officially a marketing organization, that also operates an airline.

Of the Big 3 U.S. airlines carriers (American, Delta, and United Airlines) the new AAdvantage program is the only one that will now allow members’ co branded card spend and non-flying activity in their elite status calculation. Given AA’s pioneering credentials in loyalty space, I think we can expect the others to follow in the near future.