American to Change Frequent-Flier Program

American Airlines Group Inc. said it plans to change its frequent-flier plan to award miles based on ticket price, rather than distance flown, becoming the latest and largest U.S. carrier to shift its loyalty program to favor bigger spenders.

American, the nation's top airline by traffic, said Tuesday that the changes on how its passengers earn award miles would go into effect in the second half of 2016, but it wasn't specific about a date.

United Continental Holdings Inc. and Delta Air Lines Inc. announced similar modifications in the past couple of years, joining Southwest Airlines Co., JetBlue Airways Corp. and Virgin America Inc. in embracing the so-called revenue model.

Like United and Delta, American plans to award a minimum of 5 miles for every dollar spent on the base fare plus carrier-imposed fees, but excluding taxes. Gold members will receive 7 miles per dollar spent, while the next highest tier will receive 8 miles and the top tier 11 miles.

Redemption levels also will be modified, starting in March, American said. Award redemption requirements will be lowered for trips to Mexico, the Caribbean and Central American, and for travel on domestic flights of 500 miles or less. But trips to Europe and Asia and travel in premium cabins will require higher redemptions.

American also will change how fliers qualify for elite status. United and Delta earlier added a minimum annual spending level that passengers have to meet to qualify. American said it would discontinue a points requirement and award elite status based on flight segments flown—at current levels—or qualifying miles, which will be doled out more generously on more costly tickets.

American was the inventor of the frequent-flier program in 1981. Its AAdvantage program now has nearly 100 million members, after the 30 million accounts of merger partner US Airways's customers were rolled into AAdvantage in March. The two carriers merged in late 2013 and American transferred US Airways to its reservation system platform last month, which has paved the way for more changes like the ones announced Tuesday.

Write to Susan Carey at [e-mail]

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November 17, 2015 14:35 ET (19:35 GMT)

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