American latest to tweak flier program

DALLAS — Airline travelers are adjusting to constant turbulence in frequent-flier programs.

American Airlines is the latest to tinker with its program. The Dallas-based carrier last week announced changes that make it tougher to redeem miles for a flight during busy travel periods, as well as to check a bag without a fee.

The changes aren’t as dramatic as Delta Air Lines Inc.’s recent switch to basing rewards on money spent, not miles flown, but they are just the latest example of airlines giving away less as executives increasingly focus on growing profits.

Gary Leff, a travel blogger and co-founder of frequent-flier website MilePoint.com, said airlines are lowering the value of miles because planes are full and they would rather sell the seats than give them away.

During the recent recession, when airlines were struggling and many planes were halfempty, airlines lavished miles on customers who signed up for credit cards or made other purchases. Now the big airlines routinely fill more than 80 percent of their seats.

“There’s a real trade-off between giving the seat to a frequent-flier redemption versus cash,” Leff said. “Right now the pendulum is swinging toward less generosity rather than more.”

Still, American isn’t reducing the value of miles as much as United Continental Holdings Inc. did in November for international trips in first- and business-class, travel experts say. But American’s moves will make its program more complicated and could make it easier for the airline to effectively raise prices without consumers noticing.

Some experts also expect American to eventually copy Delta’s approach, which will benefit high-spending business travelers but hurt vacationers who hoard miles earned on discount fares.

American and US Airways merged in December and between them have 110 million members in American’s AAdvantage — the granddaddy of airline loyalty programs — and US Airways’ Dividend Miles. Among the biggest changes taking effect for all travel starting on or after June 1:

No more blackout days for redeeming miles on US Airways, matching the policy at American.

For U.S. travel on or after June 1, American members can redeem miles for an unrestricted “AAnytime” award at 20,000 miles, 30,000 miles or 50,000 each way instead of the current 25,000-mile flat rate. The less flexible “MileSAAver”awards will continue to start at 12,500 miles.

Mile requirements will change on many international trips.

There will be no more free checked bags for American Airlines passengers traveling on miles they earned or who paid full price for an economy seat.

Suzanne Rubin, a vice president at American Airlines Group Inc. who oversees the loyalty programs, said that the changes will increase revenue, but she declined to give a figure.

Rubin said the cheapest awards will remain available on more than half of all travel days but not on popular ones such as the Sunday after Thanksgiving.