American Airlines Revamps Loyalty Rewards, Slashes Mileage Earnings Rate on Basic Economy

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Today, American Airlines announced a slew of new changes to the AAdvantage program. These changes include a couple of pieces of good news — including an eliminated mileage earning cap and new Loyalty Point Rewards tiers starting at just 15,000 Loyalty Points.

However, many of the changes are negative for AAdvantage members. These include increasing Loyalty Point requirements for AAdvantage Gold and certain Loyalty Point Rewards, plus reducing the mileage earning rate for basic economy.

Note that these changes generally take effect for the next elite status qualification year — which now runs from March 2023 until the end of February 2024. These changes don't affect the current elite status earning year ending February 28, 2023.

There are a lot of changes to cover, so let's break down the news into bite-sized sections.

Reduced Earning Rate on AA Basic Economy Fares

Currently, American Airlines basic economy fares earn miles and Loyalty Points at the same rate as other fares. Whether you spend $150 on a basic economy fare or a business class fare, AAdvantage members currently earn the same 750 AAdvantage miles and Loyalty Points in either case.

That's coming to an end in early 2023. AAdvantage members will earn just two miles per dollar spent on basic economy fares — instead of 5x miles. That means basic economy fares will earn 60% fewer miles than under the current system.

This reduced earning rate kicks in for American Airlines basic economy tickets:

1. Issued on or after January 1, 2023.
2. Travel starting March 1, 2023.

Increased Requirements for AAdvantage Gold

Starting in March 2023, American Airlines is increasing the Loyalty Point requirements for AAdvantage Gold status by 33%. Instead of requiring 30,000 Loyalty Points, AAdvantage members will need to earn 40,000 Loyalty Points to earn the first tier of AAdvantage elite status.

AAdvantage members will still be able to earn AAdvantage Gold elite status by earning 30,000 Loyalty Points between January 1, 2022 and February 28, 2023.

Also, American Airlines isn't making changes to any other elite status requirements. That means the AAdvantage elite status requirements starting in 2023 will be:

• Gold: 40,000 Loyalty Points
• Platinum: 75,000 Loyalty Points
• Platinum Pro: 125,000 Loyalty Points
• Executive Platinum: 200,000 Loyalty Points

Elimination of Flight Requirements for Loyalty Point Rewards

Part of the changes to the newly renamed Loyalty Point Rewards program is the elimination of flight requirements. Currently, AAdvantage members need to complete 30 eligible flight segments to unlock Loyalty Choice Rewards. Starting in March 1, 2023, this flight segment requirement will be eliminated. Going forward, the only metric required to earn Loyalty Point Rewards is Loyalty Points.

New Loyalty Point Rewards for Non-Elite Members

Although the requirements for AAdvantage Gold status are increasing, AAdvantage members will start earning some perks after earning just 15,000 Loyalty Points. American Airlines is revamping its Loyalty Point Rewards program (formerly known as Loyalty Choice Rewards) to add several new tiers.

One of these new tiers kicks in at just 15,000 Loyalty Points. After earning 15,000 Loyalty Points, an AAdvantage member will earn Group 5 preferred boarding for the remainder of the year. Plus, the member can choose one of the following two rewards:

• Priority check-in, priority security, and Group 4 priority boarding — but only for one trip
• 5 Preferred seat coupons

If this perks-for-non-elites concept sounds familiar, it's because American Airlines is following quickly in the shoes of its Northeast Alliance partner JetBlue. Last week, JetBlue announced an overhaul of its Mosaic elite status. As part of this revamp, JetBlue will begin offering non-elite members perks once they spend $1,000 on flights or $10,000 on an eligible JetBlue card — or a combination of both.

Two Other New Loyalty Point Rewards Tiers

American Airlines is also adding two other new Loyalty Point Rewards tiers — one at 60,000 Loyalty Points and another at 100,000 Loyalty Points. That places the first threshold roughly halfway between Gold and Platinum and the second halfway between Platinum and Platinum Pro.

60,000 Loyalty Point Rewards Choices

At 60,000 Loyalty Points, AAdvantage members will earn Avis Preferred Plus elite status plus a 20% Loyalty Points bonus on spending with the following partners:

• AA Vacations
• AA Hotels
• eShopping
• AAdvantage Dining
• SimplyMiles

100,000 Loyalty Point Rewards Choices

Upon reaching 100,000 Loyalty Points, AAdvantage members unlock two new benefits:

• Avis Presidents Club elite status
• A 30% Loyalty Point bonus with the same partners as above

Increased Requirements for Other Loyalty Point Rewards Tiers

Bad news for AAdvantage Platinum Pro and Executive Platinum elites: You'll no longer earn Loyalty Point Rewards upon achieving these elite status tiers. American Airlines is increasing the Loyalty Point requirements for two current Loyalty Choice Rewards tiers.

175,000 Loyalty Point Rewards Choices

Instead of earning Loyalty Point Rewards at 125,000 Loyalty Points, an AAdvantage member will need to earn 175,000 Loyalty Points to select their next Loyalty Point Reward. The choices are getting a slight revamp too. New/revised options are bolded in the list below:

• 2 systemwide upgrades [an increase from the current one systemwide upgrade]
• 20,000 bonus miles (25,000 for AAdvantage credit cardholders)
• 6 Admirals Club One-Day passes
• $200 Trip Credit ($250 for AAdvantage credit cardholders)
• Carbon emissions offset
• $250 donation to one of 10 partner charities [an increase from the current $200]
• One-time 15% award rebate
• Gift of AAdvantage Gold status (gift to two people)
• 35,000 miles off a Mastercard Priceless Experience

250,000 Loyalty Point Rewards Choices

Likewise, the current 200,000 Loyalty Choice Reward requirement will increase to a 250,000-point Loyalty Point Reward. These choices are also being tweaked. Members will be able to make two choices from the following:

• 2 systemwide upgrades
• 20,000 bonus miles (30,000 for AAdvantage credit cardholders)
• 6 Admirals Club day passes
• Admirals Club membership (requires both choices)
• $200 Trip Credit ($250 for AAdvantage credit cardholders)
• Carbon emissions offset
• $250 donation to one of 10 partner charities [an increase from the current $200]
• Gift of AAdvantage Gold status (may gift to two people)
• Bang & Olufsen products (requires both choices)
• 1 Flagship Lounge single visit pass (2 passes for AAdvantage credit cardholders)
• 35,000 miles off a Mastercard Priceless Experience

400,000 Loyalty Point Rewards Choices

Not even the current 350,000 Loyalty Point threshold is unaffected. This rewards tier is being increased from 350,000 Loyalty Points to 400,000 Loyalty Points. Again, eligible members can make two choices from the following list:

• 1 systemwide upgrades
• 25,000 bonus miles
• Admirals Club membership (requires both choices)
• $200 Trip Credit ($250 for AAdvantage credit cardholders)
• Carbon emissions offset
• Gift of AAdvantage Platinum status [previously AAdvantage Gold]
• Bang & Olufsen products (requires both choices)
• 2 Flagship Lounge single visit passes
• 1 Flagship First Dining visit pass
• 40,000 miles off a Mastercard Priceless Experience

Additional Loyalty Point Rewards Tiers

American Airlines is clearly invested in keeping members earning Loyalty Points — no matter what level you're currently at. In addition to the Loyalty Point Rewards thresholds spelled out above, members will get additional rewards choices at:

• 550,000 Loyalty Points
• 750,000 Loyalty Points
• 1,000,000 Loyalty Points
• 3,000,000 Loyalty Points
• 5,000,000 Loyalty Points

Benefits vary by level. But, to give you an idea of the potential rewards, AAdvantage members that hit 5 million Loyalty Points can choose one of the following:

• Carbon emissions offset
• 10 systemwide upgrades
• Gift of Executive Platinum status
• 500,000 mileage rebate
• 550,000 miles off a Mastercard Priceless Experience

No More Cap on Mileage Earnings

American Airlines has long had a cap of 75,000 AAdvantage miles that a member could earn on a single ticket. That cap may not affect many travelers, but travelers willing to spend $7,000+ on American Airlines tickets aren't the travelers AA wants to irk with arbitrary mileage earning limits. So, American Airlines is ditching this limitation. This change takes effect on March 1, 2023.

Benefits by Loyalty Point Threshold

Love 'em or hate 'em, but these changes mean that there are a lot more exciting Loyalty Point thresholds to look forward to in 2023. Here's a breakdown of the guaranteed benefits and benefit choices at each Loyalty Point threshold — up to 250,000 Loyalty Points:

Bottom Line

American Airlines is making a slew of changes to how you'll earn rewards starting in March 2023. The bad news includes increased requirements for AAdvantage Gold, reduced mileage earnings on basic economy tickets, and increases to current Loyalty Choice Rewards tiers.

However, AAdvantage members will score Group 5 boarding and a choice of rewards at just 15,000 Loyalty Points. New Loyalty Point Rewards tiers encourage members to keep on working toward that next threshold — up to a whopping 5 million Loyalty Points. And big spenders will be happy that the 75,000-mile cap on mileage earnings is being removed.

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