American Airlines reverses course on changes to mileage and Loyalty Points earning system

American Airlines has decided to cancel changes to its booking experience that would have impacted passengers’ ability to earn miles and Loyalty Points. Originally, passengers would only earn rewards if they booked directly with the airline or through its preferred channels, excluding some third-party platforms.

CEO Robert Isom announced the reversal at a financial conference, citing confusion and customer dissatisfaction as reasons for the decision. The airline’s distribution strategy, aimed at encouraging direct bookings, was causing customers to choose rival airlines instead.

The changes, initially set to take effect on May 1 but postponed to July 11, were part of a broader effort to streamline the booking process. However, the negative impact on customers led to the decision to scrap the plan.

The unexpected departure of Chief Commercial Officer Vasu Raja also played a role in the decision. Raja was a key figure in implementing the new distribution strategy, which has not yielded the desired results for the airline.

Despite the setback, American Airlines remains committed to its Sun Belt strategy, focusing on southern US cities. Isom emphasized the importance of the regional network, even as the airline’s shares fell following the announcement.

Overall, the decision to cancel the changes is likely to be well-received by American Airlines passengers, especially those who book through corporate platforms. The airline will now focus on improving the booking experience for customers and ensuring a smoother transition in the future.