American adds spending threshold for elite-status qualifying

American Airlines frequent-fliers already knew their days of earning miles based on distance flown were numbered. But, now they’ll also have hit “spending thresholds” to earn elite status.

The change – announced on Monday – was one of several that American made to its AAdvantage frequent-flier program. Others included a new tier of elite status as well as a change in how elite frequent-flier members are ranked for upgrades. As for the switch to revenue-based mileage earning, that will begin Aug. 1.

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But the biggest news from Monday’s announcement was the addition of spending thresholds for those hoping to earn elite status.

American said fliers now must spend at least $3,000 on fares to be eligible for its lowest tier of elite status. The addition of “elite qualifying dollars” – or EQDs – brings American in line with similar changes that rivals Delta and United have made in recent years. The elite status spending requirement will take effect Jan. 1 as fliers try to earn elite status for 2018.

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Previously, a customer could earn “Gold” AAdvantage status simply by earning 25,000 “elite-qualifying miles” (EQMs) or 30 qualifying flight "segments" in a calendar year. Now, to clear that same hurdle, a customer also will have to spend $3,000 on eligible airfare.

The spending thresholds are being introduced for all of American’s elite tiers, which top out at its Executive Platinum level. Status at that rung is gained by earning 100,000 EQMs (or 120 segments) in a calendar year and – now – by racking up at least $12,000 in EQDs.

Frequent-fliers in the programs at Delta and United can skip most EQD requirements by spending $25,000 on their respective airline-branded credit cards. (United exempts its top “1K” tier from the credit card waiver, meaning fliers must rack up the requisite $12,000 EQDs to earn that status.)

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Such a plan is not yet in place for American, but Bridget Blaise-Shamai – American’s Managing Director of Customer Insights and Loyalty – seemed to suggest something similar may be in the works.

Blaise-Shamai led a Monday morning call about the AAdvantage changes by noting: “The benefit from our co-branded credit cards is still under review. There is no statement by the company on that today.”

When asked specifically about whether American might eventually match the credit-card waivers that United and Delta offer their customers, she said there was nothing to announce now but that “something is under consideration.”

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Elsewhere, American had already announced in November that it would switch how fliers earn “redeemable” miles from the distance flown to the fare paid. But it had not specified when that would begin – Aug. 1 – until Monday’s announcement.

Customers will continue to earn miles that count toward elite status – the so-called EQMs – based on actual mileage flown, though they’ll now be paired with the just-announced EQDs for determining elite status.

With the earning changes, non-elite American customers will earn 5 miles per every dollar spent on the base fare and "carrier-imposed fees." Elite customers will earn more, with Gold members earning 7 miles per dollar, Platinum 8 miles per dollar and Executive Platinum 11 miles per dollar.

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In addition to announcing the Aug. 1 switchover, American also revealed several other changes to its AAdvantage program – including a fourth tier of elite status: “Platinum Pro”

Fliers with American’s “Platinum Pro” status – the carrier’s newest level that ranks between Platinum and Executive Platinum – will earn 9 miles per dollar. Earning for Platinum Pro will begin Jan. 1, 2017, with frequent-fliers needing 75,000 EQMs and $9,000 in EQDs for that level.

American’s earning levels for redeemable miles – as well as its new elite-qualifying dollar thresholds – are almost identical to the charts now in place at Delta and United.

Another change announced by American on Monday will be less broad, but of great interest to its elite-level fliers. The carrier says its doing away with the way it prioritizes upgrades for those customers. Currently, American sorts its upgrade lists by status -- Executive Platinum, Platinum and then Gold -- and then clears upgrades within each of those categories first by full-fare tickets and then by when the upgraded was requested. The latter tends to favor customers who book further in advance.

But, starting "later in 2017," American says it will switch upgrade priority to a "12-month rolling EQD total." That means the airline will still rank upgrades by elite tiers, but -- within the tiers -- American will begin issuing upgrades to fliers who've earned the most elite-qualifying dollars during the previous 12 months.

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