Several weeks ago, American Airlines announced major changes to its small business rewards program. With this, American’s Business Extra program has been discontinued, in favor of the new AAdvantage Business program. On balance I’d say this is a negative change, though not everyone will have the same impression.
I wanted to take an updated look at this, now that the Business Extra program has been discontinued, and the AAdvantage Business program has been fully launched.
In this post:
How the AAdvantage Business program works
AAdvantage Business is the name of American Airlines’ new business rewards program, which replaces Business Extra. The program is certainly more straightforward than the old program, and it’s also more rewarding to individuals, rather than businesses. That being said, collectively the program offers less value than before, in my opinion. Let’s go over the details of how this works.
AAdvantage Business program rewards structure
The AAdvantage Business program has a pretty straightforward rewards structure, as it adapts both the concept of Loyalty Points and AAdvantage miles. With the AAdvantage Business program, you earn the following rewards, which will post within 72 hours of an eligible flight:
- AAdvantage Business offers the individual traveler one bonus Loyalty Point per dollar spent on eligible airfare (that’s not a redeemable mile, but just a Loyalty Point toward earning elite status)
- AAdvantage Business offers the business one AAdvantage redeemable mile per dollar spent on eligible airfare
- Businesses that have the Citi AAdvantage Business Card earn two AAdvantage redeemable miles per dollar spent on eligible airfare
Just to clarify a couple of additional points:
- In order for a flight to be eligible to accrue with the AAdvantage Business program, you must book directly with American and add the AAdvantage Business number to the reservation at the time that you make the reservation; travel on partner airlines qualifies, as long as it’s booked through American
- The AAdvantage miles that the company accrues can be transfered to a designated member at no cost, and can be redeemed like any other AAdvantage miles; however, these wouldn’t earn you any additional Loyalty Points, so also wouldn’t get you any closer to earning more Loyalty Point Rewards
Qualifying for the AAdvantage Business program
In order to be eligible to participate in the AAdvantage Business program, you need to have a business in the United States or Canada with a Federal Employer Identification Number (FEIN) or Business Number.
While you can accrue rewards in the AAdvantage Business program without any minimums, in order to redeem your miles you need to meet one of two requirements:
- Have at least five unique travelers who have credited flights to the AAdvantage Business account, totaling at least $5,000 in flight revenue over the course of a year
- Be a Citi® / AAdvantage Business™ World Elite Mastercard® (review) member, in which case the requirement is waived, as there’s no minimum to the spending or number of travelers
Transitioning from the American Business Extra program
With the introduction of the new AAdvantage Business Program, American has discontinued its Business Extra program, which was the company’s old small business rewards program. How exactly is this transition working?
- As of December 15, 2023, the Business Extra program has ended, so it’s no longer possible to earn any Business Extra points
- Not only is it no longer possible to earn Business Extra points, but all outstanding Business Extra awards have been canceled and converted into points, and it’s no longer possible to redeem for most Business Extra rewards
- All Business Extra points must be redeemed by January 31, 2024, and the only option for redeeming them at this point is to convert them into AAdvantage miles at a 1:6 ratio
So yeah, if you haven’t redeemed Business Extra points, at this point you’ll just want to convert them into AAdvantage miles, as that’s your only option.
I find that the way that the program ended to be extremely disappointing. It’s one thing to only give several weeks notice for members no longer being able to earn Business Extra points, but I find it ridiculous that even outstanding Business Extra awards were canceled.
My take on the AAdvantage Business program
There’s no way to sugarcoat it — in my opinion, the new AAdvantage Business program isn’t nearly as rewarding as the old Business Extra program. However, I also see why this change is being made:
- The Business Extra program was kind of complicated and confusing to some (not to those of us who knew what we were doing, but…), since you earned a different rewards currency from AAdvantage miles
- American has largely given up on corporate sales, given how many sales positions the airline has eliminated, plus how American has eliminated the AirPass program; so it’s also not surprising to see changes to the business rewards program
- The new program is certainly well aligned with Loyalty Points being emphasized as the most important metric
- My favorite use of Business Extra points was redeeming 650 Business Extra points for a one-way confirmed upgrade within the United States, so I’ll miss that redemption opportunity
- I’m really disappointed at how Business Extra certificates are no longer redeemable with such little advance notice; it’s one thing to stop letting people earn awards, but to not even allow already earned certificates to be redeemed up to their expiration date is disappointing
All that being said, the new AAdvantage Business program is still better than nothing. The way I view it, the business earns the equivalent of a 1.5-3% return on spending (I value AAdvantage miles at 1.5 cents each), while the traveler earns an extra Loyalty Point per dollar spent (currently members earn 5-11x Loyalty Points per dollar spent). Then those miles can always be transfered to the individual traveler.
If you’re eligible to participate, there’s no reason not to.
Bottom line
American Airlines has introduced the new AAdvantage Business program, replacing the Business Extra program. With this new program, the business earns one AAdvantage mile per dollar spent on eligible airfare, while the individual earns one Loyalty Point per dollar spent. In order to participate, you need a business with at least five registered employees and $5,000 in annual spending, or you need American’s co-branded Citi business card.
I’ll miss the old Business Extra program, but I’m at least happy to see that something is sticking around.
What do you make of the new AAdvantage Business program?
As a travel manager who uses a corporate travel agency to book travel for both employees and meeting attendees, this new program is very disappointing. For those attending our meetings and book their travel through our agency (we pay for the ticket), they can't earn points because they don't have one of our company emails (domain specific). We want to continue utilizing the travel agency but I know we will are going to receive negative...
As a travel manager who uses a corporate travel agency to book travel for both employees and meeting attendees, this new program is very disappointing. For those attending our meetings and book their travel through our agency (we pay for the ticket), they can't earn points because they don't have one of our company emails (domain specific). We want to continue utilizing the travel agency but I know we will are going to receive negative feedback from those not earning points.
Is anyone else having registration errors? I copy my Business Extra profile information exactly and it will not allow me to register. I get a message that says "unable to register". Anyone have tricks to solve this issue?
Do you have a FEIN? If you got one recently, it appears to takes half a day to a day for the program to recognize it when you push the button
Dear All,
Have you had a problem with the new program recognizing purchased flights? I am an old business extra customer. 5 years. 12/15 just passed. So I just registered, activated and got my new Business program ID number today. I'm good to go, but the multiple flights purchased in the last month were not on my new account. I used the chat function. I was informed by AA that to get these flights...
Dear All,
Have you had a problem with the new program recognizing purchased flights? I am an old business extra customer. 5 years. 12/15 just passed. So I just registered, activated and got my new Business program ID number today. I'm good to go, but the multiple flights purchased in the last month were not on my new account. I used the chat function. I was informed by AA that to get these flights on my account, I would have to cancel the flights and rebook. I inquired about just flying and then getting the credit later as a missing flight request (like normal for AAdvantage or the old Business Extra program), and they just said it was "different." No help. Has anyone run into the inability to add purchased flights in the last few months to the new program?
ASH,
How did you get the registration to go thru? I copied my Business Extra info and I get a "unable to register" message. So frustration. I even tried doing variations of the info entered and still no luck.
Do you have a FEIN? If you got one recently, it appears to takes half a day to a day for the program to recognize it when you push the button
managed travel, in all shapes and sizes, simply does not matter at AA anymore.
Only good if you aren’t with a non status companion, you have to be the only one on your PNR.
Is this company still relevant in 2023? Look at United and Delta...
AA is taking their loyal flyers for granted while ignoring the true value of travel agents. I say book Delta, they still care about their customers.
There is no option to have 2 travelers book a ticket together with the same record locator big issue for me. Also EXP desk not able to help, so how do you apply SWU?
To my understanding unless I read it incorrectly, the use of a travel agent booking one’s business travel if an ineligible to earn the business miles and points
Hi Ben,
Is the company/business eligible to earn miles if the traveler use a different oneworld frequent flyer status? For example, I’m a Japan Airline Sapphire elite, if I’m using Japan Airline FFN with AA business number filled in, will the business receive any credits?
I'm going to go out on a limb and say: No. This is an AAdvantage Program for American Airlines customers. Since the only new "benefit" is really earning 1 additional Loyalty Point, not sure how that would pertain to/mesh with Japan Airlines Program? Each OneWorld member has its own separate programs for just their members. Someone earning FinnAir Avios or whatever couldn't "double dip" and earn AAdvantage Business Program miles Loyalty Points and then credit...
I'm going to go out on a limb and say: No. This is an AAdvantage Program for American Airlines customers. Since the only new "benefit" is really earning 1 additional Loyalty Point, not sure how that would pertain to/mesh with Japan Airlines Program? Each OneWorld member has its own separate programs for just their members. Someone earning FinnAir Avios or whatever couldn't "double dip" and earn AAdvantage Business Program miles Loyalty Points and then credit back to their personal FinnAir account. Kinda of a silly question. Read the terms for Yourself.
No, I’m not saying the personal part get AA credits, I’m asking if the business side will be credited AA miles.
I’m not sure if you noticed, but you can put Japan Airline or any other frequent flyer program and number WHILE putting business number. On the one hand, I won’t get the 5 miles per dollar spent on miles and loyalty points, but I was asking if the business account will get credited for...
No, I’m not saying the personal part get AA credits, I’m asking if the business side will be credited AA miles.
I’m not sure if you noticed, but you can put Japan Airline or any other frequent flyer program and number WHILE putting business number. On the one hand, I won’t get the 5 miles per dollar spent on miles and loyalty points, but I was asking if the business account will get credited for 1 mile/loyalty point per dollar spent on my eligible fare. If you do see the term, it doesn’t mention this so it’s not really a silly question.
Hey that’s my seat 5A in the thumbnail:////
The AA Business Extra website does not say what will happen to the unexpired BXP1s. Are current BXP1s still valid for use beyond 12/15/2023?
I think it depends on when you redeemed for a certificate. AA Biz Extra had a hard timeline to use (redeem) or lose the points, but then you had a year to actually use the certificate.
I had to redeem for several certificates in December 2022, or lose the points (I selected several certificates for both Mexico and Hawaii)...and they expire 12/30/23...and there is no chance to extend them (sigh).
Unfortunately I don't...
I think it depends on when you redeemed for a certificate. AA Biz Extra had a hard timeline to use (redeem) or lose the points, but then you had a year to actually use the certificate.
I had to redeem for several certificates in December 2022, or lose the points (I selected several certificates for both Mexico and Hawaii)...and they expire 12/30/23...and there is no chance to extend them (sigh).
Unfortunately I don't have the time to travel before the end of the year, so I'm gifting them to friends...ouch, but happy for the friends. It's super easy to book the certificates online, by the way.
Worth a call to see if you can redeposit the certificates under the circumstances. Or an email now I guess as they closed the phone lines
There should be laws preventing airlines from changing things midway.
And against Credit Card companies from changing things midway too. Like how CITI changed the earning period TWICE last year for the AA Executive Card and then AGAIN made mega changes to the Spend Bonus halfway through the NEXT year. Ridiculous.
As a 20-year EXP and BusinessExtra small-business owner, I will not use this program, as explained below, and this gives me a further push away from AA.
I joined the new program today and held a new flight for myself under the program while waiting for my other travellers to register. Then called the EXP desk to get them to bump the fare class from Q to G before ticketing so I could use one...
As a 20-year EXP and BusinessExtra small-business owner, I will not use this program, as explained below, and this gives me a further push away from AA.
I joined the new program today and held a new flight for myself under the program while waiting for my other travellers to register. Then called the EXP desk to get them to bump the fare class from Q to G before ticketing so I could use one of my many, now useless, BusinessExtra uprgade awards. I was informed that the EXP folks can no longer touch these reservations except for seat assignments, schedule changes and the like, and changes can be made only through a "virtual assistant"/chat. I went online to the chat, and wouldn't you know it, there is no option for "AAdvantage Business" questions. You gotta be kidding me, I'm not even going to waste my time trying to go through chat hell.
I hate to diss AAdvantage Business as it's just getting started, but it surely seems designed to DISadvantage business, at least small ones.
Oh, and for another tentative trip I tried, it won't even let me book two business travellers on the same reservation! D'uh.
John,
How did you get the registration to go thru? I copied my Business Extra info and I get a "unable to register" message. So frustration. I even tried doing variations of the info entered and still no luck.
Nothing like AA changing the program to eat ppl's existing points/their liabilities.
I would have met the minimum spend threshold (on the rolling 12 month basis) January of next year when I'm flying on a paid J ticket. I was going to redeem all my existing points then. This sudden end of the program/Dec 15 deadline means my remaining balance will be ineligible to carry-over/redeem. Sucks to be me, I guess.
Wow. I’ve got the Biz cc but otherwise I’d have to bring on the two sisters next door, but not close to $5K spend.
As it is I brought on my neighbor when 3 employees requirement was added
I’ve depleted my BizX for the fabulous E175 to STL and back for April Eclipse
Party On
Biz card will waive all requirements but existing cardholders can’t make an AA Business account yet
Not that complicated. You can’t sell BX points to banks, the writing was on the wall when they ended the AMEX BX card and bowed down to their overlords at Citi.
This is all about co-brand and the extra revenue they’ll get from Citi. They’re selling it as more simplified and less complicated, but it’s a thinly veiled attempt to squeeze every dollar they can out of selling increasingly less valuable AAdvantage miles.
I think you are wrong about eligibility. From the language it seems that if you have an AA biz credit card you don't need to have five employees. From their site: "Businesses must have a minimum of 5 travelers and spend $5,000 on American Airlines flights over 12 months to use their miles. These requirements are waived for CitiBusiness® / AAdvantage® Platinum Select® Mastercard® cardmembers." It says "These," plural, requirements are waived for biz cc...
I think you are wrong about eligibility. From the language it seems that if you have an AA biz credit card you don't need to have five employees. From their site: "Businesses must have a minimum of 5 travelers and spend $5,000 on American Airlines flights over 12 months to use their miles. These requirements are waived for CitiBusiness® / AAdvantage® Platinum Select® Mastercard® cardmembers." It says "These," plural, requirements are waived for biz cc customers. Am I wrong? This determines whether I am eligible.
I was actually wondering the SAME thing. I am Self-Employed and would LOVE to sign up for this.....BUT only IF I'm actually eligible.
I really like the Business Extra program, and didn't actually think it confusing. It actually has gotten a lot easier to redeem online in recent years as well. I also like to book my own travel, so I don't see that as a hardship...but to each their own. @jacklymon asked a great question.
Does this mean that flights on British airways no longer count?
Another attempt by American to cut costs by forcing people to book on their website/app. Business travelers fly more frequently and make more changes than vacation travelers. Can't wait for the next big storm, when hundreds of flights are cancelled, the website won't work, the line at the airport is hundreds deep and the wait for an agent on the phone is an hour for the executive platinum line and 3+ hours for everyone else....
Another attempt by American to cut costs by forcing people to book on their website/app. Business travelers fly more frequently and make more changes than vacation travelers. Can't wait for the next big storm, when hundreds of flights are cancelled, the website won't work, the line at the airport is hundreds deep and the wait for an agent on the phone is an hour for the executive platinum line and 3+ hours for everyone else. I'm sure booking direct will work for some travelers, but most will see that a good travel agent is invaluable. American has done everything they can to make it more difficult for travel agents to book their flights. Amazing, after all the issues they've had in the past year, they don't see the value in having a distribution team that they don't have to compensate or pay benefits, and that helps mutual customers when there are delays and cancellations.
100%.. My business clients will already pay more for tickets to have me control their records when things go wrong and not be at the mercy of the airline. I had one company that has at least $30k spend a year with American, I will be pushing that to Delta where even with their business program changes they did not exclude agencies. The airlines do not want agents being able to help customers, it makes them look bad.
You are absolutely right. This is all more of AA just trying to cut out the middleman...which in many businesses can be a good thing, but not in the airline business! They NEED middlemen to help out when things go wrong, as they don't have anywhere near the infrastructure to handle all customers directly. Just look at their hold times when there's any sort of weather event.
I guess we'll see this winter once the...
You are absolutely right. This is all more of AA just trying to cut out the middleman...which in many businesses can be a good thing, but not in the airline business! They NEED middlemen to help out when things go wrong, as they don't have anywhere near the infrastructure to handle all customers directly. Just look at their hold times when there's any sort of weather event.
I guess we'll see this winter once the delays pile up. I, for one, wish nothing but failure for AA as a business at this point. Their top brass has done as much as possible to take as many dollars as possible from their employees, their partners, and their customers. Unadulterated greed.