Once upon a time, when you bought an airline ticket, the fare included meals, checked bags, seat selection and more. Those days are clearly gone. Now, these once-standard perks are major revenue drivers for the airlines. Fliers are genuinely thrilled to get a free bag of peanuts, and airlines have become quite creative when it comes to finding new ways to squeeze extra dollars out of passengers.
Ancillary fees and the revenue they generate have been on the rise for more than a decade: In 2016, airlines worldwide earned $67.4 billion from these add-ons. By 2024, that figure had nearly doubled, to $148.4 billion, with final projections for this past year topping $157 billion, according to an analysis by the IdeaWorksCompany, an airline-revenue strategy firm.
And now, just when it seemed like there couldn’t possibly be anything left to monetize, some carriers have found a new target. American Airlines is the latest to make the controversial move, and it could affect your wallet the next time you book a ticket. Which formerly free perk has disappeared? Keep reading to find out what it is, what frequent fliers have to say about it and whether ponying up the extra cash is really worth it.
Get Reader’s Digest’s Read Up newsletter for more travel, cleaning, humor, tech and fun facts all week long.
What perk is American Airlines getting rid of?
Basic Economy fliers, we have some bad news. American Airlines recently announced that customers who purchase the airline’s lowest-tier ticket will no longer earn AAdvantage miles or Loyalty Points toward AAdvantage status.
This new restriction is on top of the restrictions Basic Economy passengers already face. Travelers in this fare class have to pay for any checked bags, seat selections and extra legroom. They also board last, raising the dreaded risk of limited bin space, and they are not allowed changes to their tickets.
Does this affect all passengers?
No, just those who choose Basic Economy fares. Customers earn AAdvantage miles and Loyalty Points for flying with an eligible ticket, such as Main Cabin, but according to the fine print on the American Airlines website, Basic Economy tickets bought on or after 12 a.m. on Dec. 17, 2025, are explicitly excluded.
Why did American Airlines make this change?
Profit is almost certainly the major factor. Stripped-down benefits mean the legacy carriers can more aggressively compete on price with low-cost carriers. And the market pressure is real. Citing a regulatory filing, CBS News reported that while American Airlines earned $13.7 billion last quarter, it still posted a $114 million loss.
“We routinely evaluate our fare products to remain competitive in the marketplace,” American Airlines told CBS about the updated policy. “Basic Economy customers will continue to receive one free personal item and one free carry-on bag, free snacks, soft drinks and in-flight entertainment.”
What are passengers saying?
American Airlines customers on Reddit had decidedly mixed reactions to the change. One Redditor called the change a “blatant” and “anti-consumer” snub: “This isn’t a loyalty program, it’s a corporate middle finger.” Another described the switch as shortsighted. “This benefit clearly differentiated AA from competitors. I will be now reviewing alternatives.”
But others defended the move. “They are one of the last airlines to do this,” one commenter pointed out in the forum. “If you’re booking [Basic Economy], you shouldn’t reap the benefits.” Another frequent flier added: “Many of us fly twice a week and don’t need to pay for all the extra junk everyone else is flying around with.”
Do other airlines have a similar policy?
Yes. My preferred airline, Delta, made a comparable change in 2025, phasing out their lowest tier, Basic Economy, and replacing it with Main Basic. United Airlines and Alaska Airlines offer mileage-earning on their lowest fares—but there are restrictions, such as reduced earning rates and limits on elite-qualifying credits.
Is it worth it to pay extra to earn frequent-flier miles?
It really depends on how often you fly and what you value.
I recently searched for a round-trip, nonstop ticket from Newark to Chicago O’Hare. I found a Main Cabin fare starting at $461 and a Basic Economy seat for $391. That $70 upgrade doesn’t just allow passengers to earn AAdvantage miles and Loyalty Points toward AAdvantage status—it also gives them the ability to choose a seat, board earlier and receive a full refund in the form of a travel credit if plans change.
On the other hand, a round-trip ticket from Newark to Rome started at $1,345 for Basic Economy but increased by $210, to $1,545, for Main Cabin. Some passengers may not find the jump in price worth it.
One Redditor pointed out that infrequent fliers who typically book Basic Economy may actually benefit, since American Airlines can price the tier more aggressively. “People who only fly once or twice a year don’t really have a use for the useless amount of miles they earn anyways,” they wrote. However, for one frequent flier, the choice is a numbers game: “Do I earn enough miles to make up the fare difference for booking [Main] or not?” In that case, the Redditor reasoned, “I can book accordingly.”
RELATED:
- These 7 Air-Travel Rules Changed in 2025—Here’s What You Need to Know Before You Fly
- Here’s Why You Can’t Always Move Seats on an Airplane—Even If It’s Empty
- Dangerous, Hazy Smoke Has Been Seeping into Airplane Cabins—Here’s What You Need to Know
Why trust us
Reader’s Digest has published hundreds of travel stories that help readers explore the world safely, easily and affordably. We regularly cover topics such as the best places to visit (and the best times to visit them), tips and tricks to zoom through airport security, flight-attendant secrets, hotel-room hacks and more. We’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing, and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Forbes: “Airlines Earn $157 Billion in Fees, but Passengers Pay 40% Less to Fly”
- CBS News: “American Airlines Stops Offering Miles and Other Rewards for Basic Economy Fares”
- American Airlines: “FAQ”
- American Airlines: “SEC Filing: American Airlines”
- Reddit: “American Airlines quietly killed mileage earning on Basic Economy—AFTER annual fees posted. Anyone else furious?”
The post American Airlines Got Rid of This Perk—And You Might Want to Think Twice Before Booking appeared first on Reader's Digest.
from Reader's Digest https://ift.tt/WxtIi4n
Comments
Post a Comment