Travel

Flying for dollars: American Airlines changing AAdvantage loyalty program

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American Airlines is revamping its AAdvantage loyalty program in the second half of 2016, shifting how passengers earn award miles to dollars spent rather than distance flown.

Award redemption rates will be adjusted with some award levels increasing, while others decrease, airline representatives said in a conference call Tuesday.

Additionally, Fort-Worth-based American (Nasdaq: AAL) will offer the best elite-level mile multipliers in the industry and simplify the elite qualification process, Suzanne Rubin, president of AAdvantage, said on the conference call.

“We have studied the marketplace, and we’ve put forward changes that we feel better construct the program,” Rubin said.

American Airlines has spent the last two years focusing on integration after its merger with US Airways, Rubin said. Now, the airline is laying the foundation for the future of the AAdvantage program to ensure it’s rewarding its most loyal customers, she said.

In the second half of 2016, when traveling on flights marketed by American, members will begin earning award miles based on the price of the ticket purchased and that member’s status level.

AAdvantage members will receive five miles for every U.S. dollar spent on the base fare and carrier-imposed fees. Gold members will receive seven miles, Platinum members will receive eight and Executive Platinum members will receive 11 miles per dollar spent.

Until the new structure takes effect, members will still earn award miles based on the distance flown.

American is extending its bonus miles promotion that allows members to earn even more on first- or business-class tickets they purchase. Click here for more information.

In March 2016, some award redemption levels will be reduced by as much as 40 percent for AAdvantage members, including some destinations in Mexico, the Caribbean and Central America. Award redemption levels on other routes, such as some flights to Europe and Asia, will increase due to changes to market pricing and demand, Rubin said.

“Some award levels will go up," she said, "and some will go down.”