In the past couple of weeks, we’ve seen most US airlines hike checked bag fees, in an effort to increase revenue during a very challenging time (due to high oil prices). American has just matched those checked bag fee increases, but is taking it to the next level, and is making basic economy much worse.
In this post:
American destroys the value of basic economy for elites
Nowadays virtually every US airline has some form of a basic economy product, with the concept being that it’s intended to better compete with ultra low cost carriers, and fill seats that might otherwise go out empty.
From the perspective of airlines, basic economy isn’t just about offering people lower fares who may otherwise fly other airlines, but instead, it’s about getting existing customers to pay more to avoid basic economy. In other words, basic economy is intended to be punitive, because airlines would ideally have all passengers avoid these fares.
American has just announced a series of changes to basic economy:
- For tickets purchased as of April 9, 2026, checked bag fees will be $5 more for the first and second bag for basic economy tickets compared to standard economy tickets; so a first checked bag will cost $50-55, while a second checked bag will cost $60-65 (depending on whether you pay in advance, or within 24 hours of departure)
- For tickets purchased as of May 18, 2026, basic economy tickets will no longer be eligible for complimentary elite upgrades or in conjunction with systemwide upgrades; cash or mileage upgrades with dynamic pricing will continue to be available on basic economy tickets
- For tickets purchased as of May 18, 2026, basic economy tickets will no longer be eligible for complimentary seat assignments, so even elite members will have to pay in order to assign seats on these fares
This is only the latest negative change to American’s basic economy fares, because in late 2025, the airline made a change so that basic economy fares are no longer eligible for AAdvantage mileage accrual or Loyalty Points.
The intention with this policy change is obvious
We can obviously disagree with the merit to this change, but the intent is obvious — American wants to do everything it can to incentivize elite members to spend more and avoid basic economy. That’s clear based on this change, and it was also clear based on the update a few months back, which meant basic economy no longer counts toward elite status.
When it comes to basic economy, airlines try to find the right balance between generating incremental business and making the fares punitive enough so that passengers want to avoid them. The math on punitive policies differs based on whether someone is an elite or non-elite passenger.
For non-elite members, the biggest change here is just that they’ll pay an extra $5 for a bag, assuming they don’t have it included on account of status or a credit card. But the much bigger change here is for elite members, as basic economy tickets already don’t count toward status, and soon won’t even offer most elite perks either.
Bottom line
American is making major updates to its basic economy fares. Effective immediately, we’re seeing checked bag fees on basic economy fares be $5 higher than on non-basic economy fares. But even bigger news is that for tickets purchased as of May 18, 2026, basic economy tickets will no longer be eligible for upgrades or complimentary seat assignments, so that’s hugely negative for elite members.
What do you make of American’s latest basic economy changes?
I am a million miler with AA, but they have sunk so low that I now fly Delta, Alaska, or even Condor before I look at AA.
As expected with a basic economy fare, but the real question is how many elite members really do fly basic ecoomy.....It sounds like they changed a lot here when in reality it applies to few I think.
you can expect Air Canada to be the first to copy this
How many top tier elites of the US3 are buying BE fares, besides for short hops (1-2 hr domestic)?
Pls. Raise your hands for Lucky to take count.
I know I don’t. Never booked BE on any international flights or very rarely US domestic > 1.5 hours.
Booked BE once @ UA from LAX-EWR.
I swore never again.
Monitor the rush of elites buying basic economy until May 18th. Then watch the drop off of elites discretionary flying. Playing field will be leveled and discount airlines will benefit.
United, Southwest and Delta raised their bag fee by $10, nothing said. American raised it by $5, and it's BIG NEWS!
United, Southwest and Delta raised their bag fee by $10, nothing said. American raised it by $5, and it's BIG NEWS!
Crappy airline that will continue to fail. It’s the Greyhound bus of the air.
I do not understand why you created a thread bitching about BE when yesterday you created a thread: "Delta CEO Says Fares May Not Go Down Even If Oil Prices Drop, AND THAT'S FINE" (emphasis mine).
This reduction in BE offerings is a defacto fare increase - just like the concept of BE was as will Basic Business become - You should be fine with these as well.
Consumers need to wake up and draw a line in the sand and reduce their flying.
Oh, please.....bitchy little comment
AA needs to add an opt out seeing BE fares - like UA does.
I used to brag to my Delta friends about how much better AA's loyalty program was than Delta's so it was ok if everything else wasn't quite as good. This disastrous change eliminated my last reason for not switching to where all of my friends fly.
Yeah, mostly this. AA miles still more valuable, and partner airlines are very good internationally. But AA itself… sigh.
This just drives people to the discount airlines. They are all about who they are, so their business model doesn’t feel punitive (cheap maybe, but not punitive). American’s policies are meant to screw with you, which gives me no reason to spend money with them over the discount airlines, which then defeats the whole strategy of basic economy itself.
I just chose two system wide upgrades as my award based on being able to upgrade from basic economy. What good are system wide upgrades now?
It's like Vasu Raja never left the building....
I have to suspect that most Elites have gained that status by flying Main Cabin on corporate business. Must corporate policy is the "Lowest Logical Airfare nonstop within a 2 hour window". I HOPE that most corporate travel policies exclude BE. I would hope.
And I suspect that most of these corporate travelers would not consider BE for their own personal travel, although I could be very wrong here.
That’s a good point. When traveling with OPM, yeah, unless you’re at mom n’ pop operation, most corporate booking platforms do exclude basic, so those folks relying on status to get Main to MCE or complimentary upgrades should be mostly unaffected by this. Like most things, ‘it depends,’ but I think you’re onto something here.
I'm an exec plat who always flies BE. There are plenty of us. Half of the perks you get with status are only worth something on a BE ticket because you get those perks with a regular ticket. This along with the move to drop 25k mileage upgrades was the last straw for me. They're not better than Delta - they just had a better program until now
No worries AA I will fly someone else
Buh bye
I’m lifetime elite at a few airlines but this makes me a equal opportunity buyer more so
Tomorrow, American will tell us, "The chocolate ration has been increased".
If you take away elite benefits on basic economy fares I suppose two things could happen.
1) elites stop buying basic economy
2) fewer people want to be elite
Which is more likely I wonder.
Brilliant tactic, eliminating one of your few competitive advantages.
*AAdvantages
The next shoe to drop is no Club access on BE
There’s never been club access in BE.
You misunderstood - there's always been club access with the card. I believe Delta makes you buy a full price ticket to access the lounge even if you have a card
I didn't hate the old policy around basic economy.
The way I saw it, it was good for business travelers. If work is paying for regular economy, I fly that and get my status/miles that way. Then, when I want to take a personal trip, I can book the basic economy ticket, then use my status benefits to at least make it tolerable.
To me, the underrated way to keep road warriors loyal, is to...
I didn't hate the old policy around basic economy.
The way I saw it, it was good for business travelers. If work is paying for regular economy, I fly that and get my status/miles that way. Then, when I want to take a personal trip, I can book the basic economy ticket, then use my status benefits to at least make it tolerable.
To me, the underrated way to keep road warriors loyal, is to make sure you take care of them when they're traveling with their families specifically. When I'm traveling by myself, the upgrades are nice, but I don't really care that much (I mean - suite in a hotel when you're there for 2-3 nights and only sleeping in the room, who cares). But, if I'm traveling with my wife and can make the trip better for her, that's really worth something. It's particularly effective with soft product too.
These companies are financial engineering alchemy with a bit of airplane flying on the side. Their first priority is to their credit card masters, and definitely not the passengers. We’re just pawns in this game.
Funny how main cabin was considered the standard, now basic is standard minus 50%. May as well not include travel on the plane and say you have to take a bus.
They say we killed Frontier and Spirit yet the big 3 is now doing their own version of them with basic fares across the board.
Seems penny wise, pound foolish thinking. A lot of elites earn their status on corporate account but are price sensitive leisure travelers. Ever try flying just to/from Dallas or Charlotte, AA rates are often way higher than United or Delta. Just encouraging their loyal captive audience to go try a competitor airline and likely experience a better product too
Of course AA has higher fares DFW CLT as
They offer nonstops that others don’t. (Hubs) Price out DEN EWR on UA and AA, or ATL DTW on DL and AA, see which is higher.
Lol yeah basic economy is part of how we killed Frontier and Spirit. The market didn't just disappear overnight
They were the most profitable pre 2019, so what happened?
Basic economy was only a couple years old then. Customer preferences didn't just shift overnight
Does it align with how UA and DL treat their elite members? If so it’s just a catching up, not the end of the world. Hope UA and AA keep its award tickets non-basic unlike DL.
Copium.
Well for us that fly In First or Business Class, this change means nothing for us.
Sorry poor people. Lol
This change means everything to you.
You're just too ignorant to realize it.
First they came for Delta
And I did not speak out
Because I was not Tim Dunn
Then they came for the bag fee
And I did not speak out
Because I was not flying without status
Then they came for the seat selection
And I did not speak out
Because I was not a...
This change means everything to you.
You're just too ignorant to realize it.
First they came for Delta
And I did not speak out
Because I was not Tim Dunn
Then they came for the bag fee
And I did not speak out
Because I was not flying without status
Then they came for the seat selection
And I did not speak out
Because I was not a flying economy
Then they came for the basic economy
And I did not speak out
Because I was not poor people
Then they came for me
And there was no one left
To speak out for me
You idiot
@eskimo this is a banger comment lmao
Nice attitude.
Dude, you fucking think Tokyo is in China. Don’t try to convince anybody here that you fly at all, least of all in business or first.
Go ask your mom what time dinner will be ready so you know when to come up from the basement.
Marie Antoinette: "Let them eat cake!"
Dave Stafford: "Let them fly Basic Economy!"
lol
Wow, you're soo coool Dave.
Go away, Dave.
I don't mind this - it felt like I was cheating getting MCE for free on a Basic Economy fare. It was good while it lasted.
See how effective gaslighting is.
Really? You feel like you’ve been cheating a multi-billion dollar publicly traded company? Eh…please don’t flatter yourself, and kindly put down the AA marketing materials.
I got my AA Plat from Hyatt, and it has been perfect for all my BE bookings. Now I have to rethink the whole picture.
The only silver lining is that AA's main is usually only $30 extra, compares to AS or DL that charges 45~50
Give AA another few days to fix that darn algorithm and make it more expensive for everyone.
And here I am where just not being able to change my ticket in basic is enough to make me buy up
Actually this makes good sense. If I get the same benefit for less money, then of course I am going basic. Now, they will have to pay the going rate to get the perks which makes complete busienss sense. This will help boost AA earnings forsure.
Yes of course, why provide a benefit to people who earn status flying and spending on your card? Driving away elite customers makes complete business sense.
Yeah, but it’s gonna rub CLT the wrong way. Some would say, folks will end up MIA… DOH!
I have Atmos Silver and recently flew on an American Airlines basic economy ticket a few weeks ago (one-way, took Amtrak home).
I qualified for Silver status after I booked the ticket and I could tell the status was working when I was able to book us complimentary seats. I was very surprised to look recently and notice that I had gotten the 500 minimum (not full milage) base, 125 bouns, and 500 status miles...
I have Atmos Silver and recently flew on an American Airlines basic economy ticket a few weeks ago (one-way, took Amtrak home).
I qualified for Silver status after I booked the ticket and I could tell the status was working when I was able to book us complimentary seats. I was very surprised to look recently and notice that I had gotten the 500 minimum (not full milage) base, 125 bouns, and 500 status miles for each segment of the trip. I don't know if this is normal or if our flights were (accidently) upgraded to the O fare class (that's what my points activity in Atmos rewards is showing) after I rebooked us the morning of our trip taking advantage of a same day change waiver to avoid bad weather in Chicago, our connecting city (the first segment was originally the Landline bus from South Bend).
Is this only for AA elites? Or does the new seat policy also apply to other Oneworld Elites as well?
My question as well. Always loved to get Main Cabin Extra Seats with OWS/OWE.
Would be crazy if different for other OW elites -- would be a significant incentive to shift to Atmos status rather than AA (like I believe Ben has done already).
This applies to any person purchasing basic economy. That would look so bad if AA still allowed OWE from another program to select MCE on a BE flight…
It wouldn't be that crazy for AA...I mean a oneworld sapphire on a domestic basic economy ticket can access their flagship lounges when their own first class passengers without status cant even access the admirals club.
Presumably most people interested in status, particularly from PLT and up as that's where the real benefits are, do not buy BE because they do not earn LP. Non elites are not going to be thinking of sitting up in premium and if they want extra legroom they know they're going to need to pay. Or if they do not want a middle seat and/or be able to sit next to a companion.
Would you...
Presumably most people interested in status, particularly from PLT and up as that's where the real benefits are, do not buy BE because they do not earn LP. Non elites are not going to be thinking of sitting up in premium and if they want extra legroom they know they're going to need to pay. Or if they do not want a middle seat and/or be able to sit next to a companion.
Would you rather just see an across the board fare increase? Or airlines go bankrupt on cheap fares and the taxpayers, some who do not fly, fund another round of airline bankruptcies. Despite airline travel sites lore airlines do not make money on a $79 fare.
Our resident libertarian economist has arrived: Let them fail, George? Personally, I’m not a fan of losing options as a consumer; but, wouldn’t that be the ‘free market’ deciding? *facepalm*
Hi, resident exec plat here looking to make a switch after this change. I always fly BE. They get their money on my CC spend.
1990, totally agree with you as I always advise people don’t BUY basic economy. If you wanted first class you should have bought it
“If you wanted first class you should have bought it”
Thank you, Captain Obvious.
Welcome to OMAAT.
It sucks because much of the time 'basic' just means that they raised normal fares while taking things away from you. So, if you care about status or don't want to board last or be forced to gate-check, etc., simply do not book basic. However, you don't care about status and miles and all these silly games that the rest of us are apparently obsessed with, you likely aren't visiting OMAAT anyway, and you're probably...
It sucks because much of the time 'basic' just means that they raised normal fares while taking things away from you. So, if you care about status or don't want to board last or be forced to gate-check, etc., simply do not book basic. However, you don't care about status and miles and all these silly games that the rest of us are apparently obsessed with, you likely aren't visiting OMAAT anyway, and you're probably not flying AA either. In that case, please, have fun at Spirit and Frontier if they survive, or enjoy staying home while we all endure this economic downturn and higher fuel costs. Yay...