American Airlines Announces A Major Change That's Bad News For Budget Travelers

You're about to book a trip, you've checked the best websites to help cut your travel costs, and you're feeling good. You diligently collect points on every flight you book, all while being budget-savvy. You confidently consider yourself a point-collecting guru, and as you log in to your American Airlines account, you notice that there's been an unsettling change to the points system. Customers flying Basic Economy with American Airlines are no longer eligible to earn AAdvantage miles or points towards their loyalty status, which is bad news for budget travelers.

While you shouldn't book this type of ticket during a government shutdown, a Basic Economy ticket has been a great way to save money and collect points ... until now. American Airlines' latest Instant Status Pass loyalty offer is causing a buzz, but stripping budget-conscious travelers of the opportunity to gain miles or points toward elite status is leaving a bad taste in travelers' mouths.

The program changes took effect on December 17, 2025. From that date forward, members will no longer be able to reap the benefits of collecting points to put toward miles or their AAdvantage status with a Basic Economy ticket. With the change in policy, American Airlines has mentioned travelers who book Basic Economy tickets will still be eligible to bring a free personal item and carry-on bag. The carrier has also mentioned that free drinks, snacks, and in-flight entertainment will still be available to customers flying Basic Economy. A spokesperson for American Airlines told CNBC that if Basic Economy travelers are part of the Elite loyalty member group, they'll still have the ability to upgrade to first-class seating on domestic flights.

American Airlines is certainly not alone when it comes to North American airline carriers stripping Basic Economy customers of benefits. Air Canada's Basic Economy rules have shaken up travel plans during an early-2025 shift to no longer allow a free carry-on bag on all North American flights, with other major airlines jumping on the bandwagon as well. If you have to pay an additional fee to check your bag, is a non-refundable Basic Economy ticket worth it for those traveling on a budget? You might be better off paying for a higher ticket fare with included luggage and AAdvantage perks.

Delta Air Lines has also announced that passengers can say farewell to collecting Delta SkyMiles if they book a Main Basic ticket. Comparatively, United Airlines still allows travelers to collect MileagePlus points, but booking a seat in Basic Economy won't include a carry-on bag on most flights. Southwest Airlines has launched their version of Basic Economy seating as well, and while you can still earn miles, you'll earn them much slower than if you opt for pricier tickets.

With more airlines introducing new policies to offset cheaper fares, passengers who have accumulated points over the years still have plenty of smart ways to use airline points. And if that's you, you should use them before you lose them.