As overwhelming demand for new or renewed passports leave travelers scrambling ahead of their international travel plans, third party companies have come into play.
This Week, American Devalues AAdvantage
27.07.2023 - 18:55 / smartertravel.com
This week, on March 22, American’s new AAdvantage award chart takes effect, the first in a two-step devaluation of the oldest and largest airline loyalty program.
When American announced the changes, in November of last year, it described them as follows: “Award redemption rates will be adjusted with some award levels increasing, while others will be decreasing.” That’s true, as far as it goes. But the larger truth is that the award-price increases far exceed the decreases, in both number and degree, resulting in a net devaluation of AAdvantage miles.
RELATED: The Best Mileage Program for Average Travelers: Alaska Air’s
That’s clear from a summary of the major positive and negative price changes:
Less Expensive Awards (Each Way)
Domestic coach (<500 miles) decreases from 12,500 to 7,500 Domestic business-class (<500 miles) decreases from 25,000 to 15,000 Caribbean business-class decreases from 30,000 to 25,000 Mexico business-class decreases from 30,000 to 25,000 Central America business-class decreases from 30,000 to 25,000More Expensive Awards (Each Way)
Alaska/Canada business-class increases from 25,000 to 30,000 Hawaii business-class increases from 37,500 to 40,000 Europe business-class increases from 50,000 to 57,500 South America Region 2 business-class increases from 50,000 to 57,500 Asia Region 1 business-class increases from 50,000 to 60,000 Asia Region 2 business-class increases from 55,000 to 70,000 South Pacific business-class increases from 62,500 to 80,000 Domestic first-class increases from 32,500 to 50,000 Alaska/Canada first-class increases from 32,500 to 55,000 Hawaii first-class increases from 47,500 to 65,000 Europe first-class increases from 62,500 to 85,000 Central America first-class increases from 40,000 to 50,000 Mexico first-class increases from 40,000 to 50,000 South America Region 1 first-class increases from 40,000 to 55,000 South America Region 2 first-class increases from 62,500 to 85,000 Asia Region 1 first-class increases from 62,500 to 80,000 Asia Region 2 first-class increases from 67,500 to 110,000 South Pacific first-class increases from 72,500 to 110,000So, for the great majority of award prices that will change, the change will be a price increase, in some cases a substantial one.
Pay-to-Play Earning
If higher award prices were the only looming downgrade to AAdvantage, they might be dismissed as an unfortunate inevitability. It’s the next step, however, that will strip the program of its relevance for many travelers.
Following in the footsteps of Delta and United, sometime in the second half of 2016, American will pin earning rates on American flights to the price paid for tickets, as follows:
Non-elites will earn 5 miles per $1 spent Gold elites will earn 7
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