American Airlines has announced that travelers booking basic economy tickets on or after Dec. 17 will no longer earn AAdvantage miles or Loyalty Points, as part of a broader trend of airlines reducing perks on cheaper fares. While basic economy remains the lowest-priced option with some included amenities, loyalty rewards are now limited for these tickets, although elite members can still access upgrades. This move reflects American's effort to stay competitive with other airlines like Delta and United, which have also adjusted their loyalty programs for basic economy travelers.
American Airlines has announced that starting December 17, 2025, members of its AAdvantage loyalty program will no longer earn miles or loyalty points when purchasing basic economy tickets, although they will still receive some in-flight amenities. This change aims to make basic economy fares less attractive to travelers who might otherwise opt for more expensive tickets, as the airline seeks to balance competitiveness and profitability amid recent financial losses.
American Airlines will no longer allow passengers purchasing basic economy fares to earn frequent flyer miles or points toward elite status starting December 17, 2025, aligning with industry trends as airlines seek to attract higher-spending customers. Basic economy tickets will still include some amenities like a personal item, carry-on, snacks, and entertainment, with elite members retaining some benefits. This move follows similar policies by Delta and contrasts with United, which still allows mile earning on basic economy tickets.
Southwest Airlines reported better-than-expected Q2 earnings driven by higher bag fee revenues, despite a revenue hit from switching to a basic economy fare that reduced bookings and impacted revenue per seat. The airline expects to earn $350 million from bag fees this year and remains confident in its growth strategy, aiming for $1.8 billion in incremental EBIT by 2025. However, its Q2 net income declined to $213 million, and stock prices fell nearly 12%.
Southwest Airlines reported a 42% drop in net income for Q2 2025 amid ongoing business model changes, including new bag fees and basic economy fares, which have had mixed financial impacts. Despite some revenue from bag fees exceeding expectations, the airline faces challenges with basic economy conversion rates and industry-wide profit declines. The company remains optimistic about its transformational initiatives and future profitability.
Southwest Airlines implemented significant changes on May 28th, including charging for checked bags, expiring travel credits, and unannounced fees, which have led to confusion and negative impacts on passengers, especially regarding ticket modifications, travel credits, and benefits for elite members, often catching customers by surprise.
