Planning to fly with American Airlines soon? Get ready to shell out a little more for those checked bags and rethink how you’ll earn frequent-flier points. American Airlines recently announced a hike in baggage fees along with significant changes to how their AAdvantage members will rack up points. These changes are likely to impact frequent travelers the most, so let’s break down what’s happening and how it might affect your next trip.
What’s Changing with Bag Fees?
Starting in 2024, American Airlines is raising checked baggage fees for both domestic and international flights. The new fees will add $5 to $15 per bag, depending on your route and fare class. If you’re used to paying $30 for your first checked bag on domestic flights, you’ll now pay $35, while the second checked bag fee increases from $40 to $45. The same increases apply to international flights, so it’s time to factor these changes into your travel budget.
Why the Baggage Fee Increase?
The airline cites rising operational costs, including fuel prices and labor, as key reasons for the bump in fees. As airlines face increasing pressure to maintain profitability, passengers are seeing these costs passed on. While it’s frustrating, American Airlines isn’t alone—many major carriers have also hiked their bag fees recently.
Frequent-Flyer Points: Major Changes Ahead
Perhaps the most significant change in American Airlines’ latest update is how customers earn frequent-flier points, and it’s raising eyebrows among loyal travelers. Starting in early 2024, passengers who book through third-party sites like Expedia or Kayak will earn fewer AAdvantage miles compared to those booking directly on American’s website.
Booking Directly with American? You’ll Earn More
In a push to encourage direct bookings, American Airlines is offering more points to customers who skip third-party travel agencies. For flights booked directly with the airline, you’ll continue to earn miles based on the fare price and your elite status level. However, if you’re booking through third-party sites, expect a reduction in your miles earned, with some reports indicating cuts as high as 25% depending on the specific third-party site and ticket type.
The Push for Direct Bookings
American Airlines isn’t being subtle about their preference for direct bookings, and they’re incentivizing loyalty by offering better rewards to those who comply. By booking directly through the airline’s website or app, passengers can earn 5 to 11 miles per dollar spent, depending on their elite status, compared to significantly fewer miles when booking through third-party services. The airline claims this approach will streamline the booking process and improve customer service experiences.
How Will This Affect Budget Travelers?
If you’re someone who often books through price comparison websites to find the best deals, these changes could be a hit to your frequent-flier point balance. While booking through third-party sites may still offer some savings, you’ll need to weigh the pros and cons of sacrificing those precious AAdvantage miles. For travelers who rely on accumulating points for upgrades or future free flights, booking directly with American Airlines might become more appealing despite potentially higher upfront costs.
Loyalty Programs: Still Worth It?
With these changes, some travelers are questioning whether it’s still worth sticking with loyalty programs like AAdvantage. The answer depends on how often you fly and how important earning miles is to you. For those who are frequent travelers or already enjoy elite status, booking directly and continuing to earn miles at a higher rate may still make sense. But for casual flyers, this shift could make it harder to see the rewards pile up.
What About Basic Economy?
For Basic Economy passengers, the bag fee increases and points changes are particularly relevant. Basic Economy fares don’t allow free checked bags, and with the new fee hikes, even the cheapest tickets will come with higher overall costs. Additionally, Basic Economy customers already earn fewer miles compared to higher fare classes, making these new changes even more significant.
Elite Status Travelers: What You Need to Know
If you hold elite status with American Airlines, the impact on your frequent-flier points might be less drastic, but the bag fee increases still apply. However, elite members often enjoy free checked bags as part of their perks, so they may be shielded from these additional costs. That said, earning miles through third-party bookings will still result in fewer points, so even elite members might consider switching to direct bookings for better rewards.
When Will These Changes Take Effect?
The new baggage fees are already in place, so expect higher costs on your next flight. As for the changes to frequent-flier points, they’re rolling out in early 2024. If you’ve already booked flights for the upcoming year through third-party sites, it’s worth checking with American Airlines about how these changes might affect your points earnings.
What Can You Do to Maximize Your Miles?
For those looking to make the most of their frequent-flier points under these new rules, the answer is simple: book directly with American Airlines whenever possible. Additionally, consider using an American Airlines credit card to boost your miles earnings on everyday purchases, which can help offset the reduced points from third-party bookings. Staying informed about promotions or bonus mile offers will also help you keep your AAdvantage account growing.
Should You Change How You Book?
If you value your frequent-flier points and travel often with American Airlines, the new system makes direct booking a better option. However, if saving money upfront is your priority and you don’t mind sacrificing miles, third-party booking sites can still offer competitive deals. It’s all about balancing what matters most for your travel experience.
The Bigger Picture: How American Airlines is Evolving
These changes highlight a larger trend in the airline industry, where companies are increasingly focusing on loyalty programs and direct bookings to secure customer relationships. For American Airlines, boosting revenue through increased bag fees and driving more customers to book directly helps them stay competitive, especially as they face rising operational costs and challenges in a post-pandemic world.
Featured Image Credit: Shutterstock / Fengianum.
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For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
