Big changes to American Airlines program delayed, but still coming: AA wants you booking direct

01.05.2024 - 14:03 / thepointsguy.com

American Airlines has delayed the rollout of a controversial new system for awarding AAdvantage miles and Loyalty Points.

But the changes are still coming.

What's next? In plain English, American Airlines will cut earnings for miles and Loyalty Points on some nondirect bookings made with certain travel agents and other third-party sellers.

American wants to reward only those travelers who book through American Airlines directly or through its "preferred" booking channels. That means some travelers won't receive points or miles for their flights.

American confirmed it's delaying the rollout until July 11.

"This extension gives an opportunity for those agencies to complete the transition," American said in a statement to TPG. "We'll continue to work closely with travel agencies to support them through this transition for our mutual customers."

It's part of a broader move by American to get repeat customers and gain more control over those new customers. American has already been aggressive in getting AAdvantage members to use its cobranded credit cards and make more of their purchases through American-controlled channels like the AAdvantage shopping portal.

Not everyone is happy with the changes.

"Ironically, the segment of traveler that might be hit the hardest here are those who travel for business, the high-spending business the airlines rely on to make money," said Tim Jue, a San Francisco-based aviation and travel reporter.

Smaller corporate travel booking providers and some travel agents might not yet be ready in time to adopt the new system. That means some of those flyers won't earn miles or Loyalty Points on tickets bought for business.

Jue noted that many businesses use third-party agencies to book their travel; there's a great degree of uncertainty about whether those agencies will fall under American's "preferred" status where you can actually earn miles, "... which to everyone I know who flies for business, a major perk."

"Direct-to-consumer sales in the airline business aren't new, but this quite an aggressive push to control the distribution of the American product," Jue said.

Johnny Jet founder and editor-in-chief John E. DiScala echoed this sentiment.

"I think American Airlines is out of their minds," he said.

"Oftentimes, a corporate client buys me a high-priced, business-class ticket, but if they're not going to count those miles, you can bet I will be switching carriers just like all the other travelers who have to use third parties to book tickets," DiScala said. "If American Airlines goes through with this, they're essentially giving Delta and United the greatest early Christmas gift ever."

Some industry observers offered a different view.

"I think it's smart," said Henry