American Airlines is preparing to kickoff its 2025 AAdvantage program earnings year on March 1. The carrier announced a few changes to its loyalty program, one of which is the introduction of new luggage tags.
According to the airline, it is giving members more Loyalty Point Rewards so they can personalize travel for what matters most to them, along with more ways to use miles. These options include:
- A new personalized, collectible luggage tag as a Loyalty Point Reward after reaching 15,000 Loyalty Points.
- The ability to purchase food and beverages using their miles during eligible flights. This begins on March 18 and builds on the introduction of the option to use miles for Wi-Fi, which American added in 2024.
- World of Hyatt awards at various levels in Loyalty Point Rewards after they link their AAdvantage account to the Hyatt program.
While the idea of a personalized luggage tag is kind of cool, the tags come with a cost. The 15,000 Loyalty Point threshold is the first tier where members can select rewards. For reference, AAdvantage Gold status can be earned at the 40,000 Loyalty Point mark. In order to get the luggage tag, AAdvantage members will have to forego the following options:
- 1,000 additional Loyalty Points
- Priority privileges and Group 4 boarding for a trip
- Five preferred seat coupons
As I read through the press release, I can’t help but scratch my head. For one, it’s nice of the airline to recognize travelers prior to hitting the first status tier. However, I can’t see a world in which selecting the tag makes sense for anyone. If you’re chasing status you’d be interested in the additional loyalty points while those infrequent travelers are likely better off with priority experience for a trip or the seat coupons.
The Difference Between American and Delta has Never Been More Clear
To me, this is a clear indicator of where American Airlines is positioned when compared to competitors like Delta. Delta Air Lines announced earlier this month that it would be providing free, customizable luggage tags to its Medallion members. The tags are metal and can be customized in a variety of different ways.
These tags are being provided in addition to the Medallion status benefits. American on the other hand comes across as penny-wise and pound foolish with this offering, though the Fort Worth based carrier claims the tags are “collectable”.
American has slid to the rear of the Big 3 U.S. carriers in terms of profitability and, in my opinion, this is partially due to the nickel and dime approach the carrier has taken towards its passengers.
The airline seems to have recognized the error of its ways and is working to become a more premium airline. However, charging loyalty members for a luggage tag seems like the old America West, U.S. Airways, American Airlines we all know.
Summary
American Airlines is introducing a new, customizable luggage tags for its AAdvantage members when they hit the first Loyalty Point threshold. Unfortunately, in order to get the tags, members will have to forego other, arguably better, benefits. To me, this perfectly highlights the nickel and dime approach the carrier has taken towards passengers in recent years.
(Images courtesy American Airlines and Delta Air Lines)
