Members of American Airlines' loyalty program will no longer earn miles or other travel rewards when purchasing a basic economy ticket.

People enrolled in the carrier's AAdvantage program previously earned two miles and loyalty points for each dollar they spent on a regular fare. Now they will only earn points if they buy a more expensive ticket.

The new policy, which American Airlines announced on Thursday, is effective as of December 17.

"We routinely evaluate our fare products to remain competitive in the marketplace," American Airlines said in a statement to CBS News. "Customers who purchase a basic economy ticket on December 17, 2025, and beyond will not earn AAdvantage miles or Loyalty Points towards AAdvantage status. Basic Economy customers will continue to receive one free personal item and one free carry-on bag, free snacks, soft drinks and in-flight entertainment."

Over the past decade, major airlines introduced bare-bones tickets with few perks to better compete with budget carriers. For example, purchasers of a basic economy ticket generally cannot reserve seats without charge, can't change their itineraries without paying a fee and are last to board flights.

In its most recent quarter, American Airlines lost $114 million on revenue of $13.7 billion, according to a regulatory filing.

"American has been trying to find this sweet spot with basic economy fares where it wants them to be available, but doesn't want people who might otherwise book more expensive fares to be booking them," Scott Keyes, founder of travel deals website Going.com, told CBS News. "So they are rolling back some perks and benefits associated with them to make them less appealing to people who could decide, 'I'll pay and extra $40 to be in main economy rather than basic.'"

Source