American Airlines Raised Its Bar To Qualify For Lowest Tier Of Frequent Flyer Program

  • American Airlines Group, Inc AAL American’s AAdvantage program members will have to earn 40,000 “loyalty points” to reach Gold, its lowest tier of status, up from 30,000 from March
  • The Gold level includes free checked bags, early boarding, and free upgrades.
  • AAL became the latest airline to bump up the costs for travelers to qualify for frequent-flier status in its loyalty program in 2023, the Wall Street Journal reports.
  • Also Read: American Airlines And JetBlue Airways Tap Their Alliance Amid Antitrust Regulatory Opposition
  • Carriers made it easier for people to maintain and earn status during the pandemic to hold on to customers. 
  • But the programs also swelled in size, making it more competitive for customers to secure space in premium cabins and seats in lounges.
  • AAL also introduced new perks for people who have 15,000 points and are yet to earn status.
  • Customers with no-frills basic-economy tickets will earn fewer points for each dollar they spend.
  • Delta Air Lines, Inc DAL revamped requirements for frequent fliers to access its luxury lounges to reduce overcrowding. 
  • Also, starting next year, Delta travelers will need to spend 33% more on flights to qualify for Gold, Platinum, and Diamond Medallion status for 2024.
  • For the third quarter, AAL reported revenue of $13.46 billion, which beat the $13.25 billion consensus estimate. The company reported earnings per share of 69 cents, beating a consensus estimate of 31 cents. Revenue was up 50.1% year-over-year.
  • Price Action: AAL shares traded lower by 0.62% at $12.85 premarket on the last check Friday.
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