Economic Insider

Basic Economy Flyers Lose Mileage Perks at American Airlines

American Airlines has changed how miles and loyalty points work for basic economy travelers, a shift that affects anyone booking the airline’s lowest fare class. As of December 17, 2025, AAdvantage members flying on basic economy tickets will no longer earn AAdvantage miles or loyalty points toward elite status or future rewards. This adjustment from American Airlines updates earlier policies that once allowed some earnings even on no-frills fares.

The new basic economy rule applies only to tickets issued on or after December 17, 2025. For tickets purchased before that date, miles and loyalty points will still be credited under the old rules. The change represents a major transition in how American Airlines differentiates its entry-level fares from higher fare classes, especially within the AAdvantage loyalty program.

This article explores what has changed, how these modifications compare with other airlines, and what travelers might consider when booking flights with American Airlines going forward.

American Airlines basic economy: The New Mileage Rules

American Airlines’ basic economy has been its most affordable fare option for years, offering passengers a way to fly at lower prices with a set of restrictions. Travelers choosing basic economy typically face limits on seat selection, boarding order, ticket changes, and other perks, yet until recently, they could still earn AAdvantage miles and loyalty points.

That changed with the airline’s update in mid-December 2025. According to American’s official travel information, basic economy fare tickets purchased on or after December 17, 2025 will not earn AAdvantage miles or loyalty points. This means flights that once contributed to mileage balances and status qualifications now produce no earnings at all for those benefits.

For travelers who regularly use miles for award flights, upgrades, or other perks, this revision alters the value calculation for the lowest fare tier. The airline’s move pushes the distinction between basic economy and higher fare levels into sharper relief, reshaping how passengers assess ticket choices.

American Airlines still offers a free personal item, carry-on bag, and basic onboard services like snacks and in-flight entertainment with basic economy. However, the incentive of earning miles and points, a central feature of most frequent flyer programs, is now absent for these tickets.

Basic economy fares now deliver no miles or loyalty points to AAdvantage members when the ticket is bought on or after December 17, 2025.

How This Compares with Other Airlines

American Airlines is not alone in tightening basic economy perks, but it now stands apart in how strict its policy has become. Other major U.S. carriers have also scaled back benefits for their lowest fare classes over time.

Delta Air Lines, for example, bars SkyMiles members from earning any miles or status credit on its basic economy tickets — known as “Main Basic” — a policy that has been in place for years. United Airlines also limits some benefits for basic economy flyers, though it still awards a portion of mileage and status credit tied to distance or spend, unlike American’s full cut-off.

United’s approach still allows travelers to earn Premier Qualifying Points on these fares, even if flight segments do not count equally. American’s 2025 revision goes further by stopping all miles and loyalty points accrual on qualifying basic economy tickets issued after the effective date.

For some travelers, this places American Airlines in the most restrictive camp among the major U.S. carriers regarding loyalty earnings on ultra-budget fares. That difference could matter when travelers compare fare value and benefits across airlines.

The competitive landscape around basic economy has evolved significantly since major U.S. airlines introduced these fares in the mid-2010s to better match ultra-low-cost carriers. Changes have often reflected broader industry shifts, where carriers refine fare products to balance pricing strategy with loyalty incentives.

What This Means for Travelers

For anyone flying American Airlines regularly, the miles and loyalty points earned from basic economy tickets used to help toward future rewards or status benefits within the AAdvantage program. That is no longer the case for tickets issued on or after December 17, 2025.

This change affects both sometimes fliers and those who fly frequently. Casual travelers may no longer see mileage accumulation as part of their decision-making when booking a basic economy ticket. Frequent flyers who once used basic economy strategically for mileage earnings must now reconsider how they approach fare choices.

The shift makes higher fare classes like Main Cabin or Premium Economy comparatively more valuable for customers who place importance on earning miles or progressing toward elite status in AAdvantage. These fare categories still earn miles and points, and thus provide ongoing contributions to loyalty rewards.

For those who prioritize low ticket prices over loyalty benefits, basic economy may still be an acceptable choice. The new policy simply emphasizes that the lowest fare now carries no loyalty value in terms of mileage or status credit once tickets are purchased on or after the effective date.

American Airlines has maintained that this update is part of ongoing fare product evaluation and competitive positioning within the marketplace.

Why American Airlines Made the Change

American Airlines has repeatedly evaluated its fare structures and loyalty earnings over the years. In 2022, it reduced mileage earning rates on basic economy tickets as part of a broader overhaul of its AAdvantage program — moving toward loyalty points as the primary metric for status qualification.

The 2025 revision takes that evolution further by eliminating miles and loyalty points earnings on its lowest fare tier entirely. Airlines continually refine fare products and loyalty plan rules to align with revenue strategies, passenger preferences, and competitive pressures.

Some observers suggest that American’s decision could prompt customers who value miles to buy higher fare classes more often, which tend to contribute meaningfully to miles and status accumulation. The airline continues to offer earnings on Main Cabin and other fare categories without these new restrictions.

At the same time, the policy could influence travelers’ planning, especially if travelers compare total travel value beyond just ticket price. This includes the benefit of earning miles that can be redeemed for awards or contribute toward loyalty points required for elite status.

American’s change to basic economy rules reflects a continued trend in how airline loyalty programs and fare products are evolving to balance accessibility with perceived value.

Looking at the Broader Trend in Airline Fares

The revision to American Airlines’ basic economy earnings happens amid a broader industry environment where airlines are fine-tuning fare classes and loyalty program incentives. Major carriers have adopted various approaches to how basic economy fares fit within their loyalty ecosystems.

Delta’s policy has long restricted mileage accrual on its lowest fare class, while United still allows some earnings tied to distance flown or spend. American’s 2025 adjustment puts it clearly in the camp of the strictest mileage policy for basic economy.

For travelers evaluating airfare options, understanding how each airline treats miles and loyalty earnings across fare types is becoming more important — especially for those who care about maximizing rewards. This knowledge can affect decisions about which carrier or fare to choose when differences in miles and points are significant.

As airlines continue to revise fare structures and loyalty rewards, passengers may find themselves comparing not just ticket prices, but the overall value offered by each airline’s policies.

Will this shift by American Airlines change how you choose flights or engage with its loyalty program?

The Rise of Mobile Payment Platforms and Their Impact on Transactions

Mobile payment platforms have become increasingly prevalent in recent years, transforming how individuals and businesses conduct financial transactions. These digital solutions offer convenience and speed, allowing users to make payments using smartphones and other mobile devices. Understanding the growth of mobile payment platforms, their underlying technologies, benefits, and challenges provides insight into their expanding role in the global economy.

Growth Factors Behind Mobile Payment Platforms

Several factors contribute to the rapid adoption of mobile payment platforms. Increasing smartphone penetration worldwide provides the necessary hardware for users to access these services. Additionally, improvements in internet connectivity have made mobile payments more reliable and accessible, even in areas that previously faced technological barriers.

Consumers’ desire for convenience also plays a significant role. Mobile payment platforms eliminate the need to carry physical cash or cards, simplifying everyday purchases and online transactions. Furthermore, the rise of e-commerce and digital services creates a natural demand for seamless payment options that integrate well with mobile environments.

The availability of various mobile payment methods, including near-field communication (NFC), QR codes, and mobile wallets, allows users to choose solutions that best suit their preferences and contexts. These diverse options contribute to the widespread acceptance of mobile payments across different sectors.

Technologies Enabling Mobile Payments

The functionality of mobile payment platforms relies on several key technologies. Near-field communication enables secure, contactless transactions by allowing devices to communicate over short distances. This technology is widely used for in-person payments, offering speed and convenience.

QR codes offer another method by encoding payment information that can be scanned with a mobile device, facilitating transactions without physical contact. This approach has gained popularity in settings such as retail stores, restaurants, and public transportation.

Mobile wallets store users’ payment credentials securely on their devices, allowing them to complete transactions with authentication methods like biometrics or passwords. The integration of tokenization technology further enhances security by replacing sensitive data with unique tokens during transactions, reducing the risk of fraud.

Together, these technologies create a flexible ecosystem that supports various payment scenarios while maintaining user security and privacy.

Benefits of Mobile Payment Platforms for Consumers and Businesses

Mobile payment platforms offer several advantages that appeal to both consumers and businesses. For consumers, the convenience of making quick payments without cash or cards streamlines the purchasing process. Features like transaction history and digital receipts improve budgeting and record-keeping.

For businesses, mobile payments can increase sales by enabling faster checkouts and reducing queues. They also lower cash handling risks and operational costs associated with managing physical money. In addition, mobile payment platforms can provide valuable data analytics, helping businesses understand customer behavior and tailor services accordingly.

The integration of mobile payments with loyalty programs and promotions creates opportunities for personalized marketing and enhanced customer engagement. These benefits support the growing preference for digital payment methods among different customer demographics.

Challenges and Considerations in Mobile Payment Adoption

Despite the advantages, mobile payment platforms face challenges that affect their adoption and use. Security concerns remain a primary issue, as users worry about potential data breaches, fraud, and unauthorized access. Ensuring robust encryption, multi-factor authentication, and regular updates are critical to maintaining trust.

Technical barriers, such as compatibility issues across devices and operating systems, can limit the seamlessness of mobile payment experiences. Additionally, users in regions with limited internet access or older mobile devices may find it difficult to utilize these platforms fully.

Privacy considerations also require attention, as mobile payment platforms collect and process sensitive personal and financial data. Transparent data management policies and compliance with regulations are essential to protect users’ rights.

Finally, educating users about safe practices and the benefits of mobile payments can encourage wider acceptance and reduce resistance caused by unfamiliarity.

Mobile payment platforms have reshaped the landscape of financial transactions by offering convenience, speed, and security. Driven by technological advancements and changing consumer preferences, their adoption continues to expand across various sectors worldwide. While these platforms bring clear benefits to both consumers and businesses, addressing challenges related to security, accessibility, and privacy is crucial for sustaining growth. As mobile payments become increasingly integrated into daily life, understanding their mechanisms and impacts helps individuals and organizations navigate this evolving financial environment.