American airlines stops rewarding loyalty. Here’s why.

As of December 17, 2025, American Airlines’ passengers no longer receive loyalty points for economy seats.
 
For years, Elite members were saving money by purchasing Basic Economy to enjoy free seat selection, upgrades, and loyalty miles. American Airlines discovered this and put a stop to it. Elite Members now earn nothing for their loyalty unless they purchase premium seats. Members of all loyalty levels who purchase economy seats earn nothing to encourage their loyalty.
 
American Airlines took away the value.
 
Then on May 18, 2026, American Airlines removed all loyalty members’ ability to receive complimentary seat selection when purchasing basic seats. Elite members purchasing basic seats are also no longer eligible for complimentary upgrades to first class or business class.
 
This time American Airlines took away the experience.
 
Why would they do this? Because revenue per seat became the benchmark for earnings instead of revenue per passenger. As such, every seat on every flight is seen as a single transaction that must deliver the greatest return.
 
Whereas revenue per customer is more abstract and thus more difficult to quantify. How often do they fly? Do they bring family members? What do they spend on meals and baggage fees? What is the average lifespan of a customer?
 
While the numbers will show that loyal customers bring in the most revenue with the lowest transaction costs, these numbers can be a hard sell to shortsighted shareholders.
 
Customers can have a financial worth far beyond their average spend. The foundation of loyalty programs is built on this concept. But all loyalty programs have a cost. Upkeep, promotion, and of course, time. Some companies see this as an investment. Others see it as a cost.
 
Loyalty programs don't work if customers aren't made to feel their loyalty has any value.
 
Are your customers worth the investment? In most cases, customers that feel valued and appreciated will return regardless of rewards or status. And that can be your most effective loyalty program.