American Airlines will transition its AAdvantage loyalty
program from a mileage-based model to a revenue-based one in the second half
of 2016.
Members will earn five miles per dollar spent on both the
base fare and carrier-imposed fees, according to American, while elite members
will earn points at a higher rate based on their tier. Members will continue to
qualify for elite status by mileage and segments flown: 25,000 miles or 30
segments for Gold; 50,000 miles or 60 segments for Platinum; and 100,000 miles
or 120 segments for Executive Platinum. American will discontinue
elite-qualifying points, which are based on a combination of earned miles and
class of service purchased, and instead apply a multiplier for qualifying miles
on premium and full-fare economy tickets.
American also is changing the rates at which travelers
exchange frequent-flyer miles for flight travel. For travel beginning March 22,
the redemption level will decrease for 500-mile or shorter flights within the United
States and Canada and for flights from the United States to Mexico, the
Caribbean and Central America. Redemption levels on certain flights from the
United States to Europe and Asia will increase “due to changes to market
pricing and demand,” according to American.
Delta Air Lines and United Airlines switched to
revenue-based frequent-flyer programs this year, while American focused on its
merger with US Airways and integrating the programs, according to AAdvantage
president Suzanne Rubin.
PricewaterhouseCoopers research
released this year showed that travelers on average lose negligible points when
switching from mileage-based to revenue-based programs, though it depends
heavily on the type of traveler. In particular, premium-class flyers and
business travelers driven by schedule over price tend to benefit from
revenue-based programs.