August 8, 2008
Members of AAdvantage, the frequent flier program at American Airlines, got an email Thursday informing them they'll have to pay more, and use more miles, to get upgraded flights and free trips.
Under the changes that take effect October 1, the fee for a mileage-earned reward trip on a domestic flight will be $50. An upgrade from coach on a one-way flight within the U.S. will cost $50 plus 15,000 miles. A round trip upgrade will be twice the fee and the miles.
American said it reserves the right to change the terms again, without notice. The airline's move follows similar changes in Delta Airlines' frequent flier program, announced last week. Under Delta's changes, passengers willing to use more of their miles improve their chances of getting one of the limited number of seats set aside on each flight for free trips.
Airlines have increased fees -- in some cases adding new ones -- in an effort to offset the skyrocketing price of fuel. While they have been quick to stick passengers with fees, they have been reluctant to increase ticket prices more than token amounts.
While some passengers would prefer to pay more for a ticket than be nickeled and dimed for soft drinks, pillows and extra bags, the airlines apparently feel that can't raise ticket prices to cover their cost of fuel.
Not all airlines are in the same situation, however. Southwest Airlines is not feeling the fuel pinch since it locked in two years worth of jet fuel at last year's prices. If all the other airlines raise their ticket prices by 20 percent to cover their increased operating expenses, they would be at a big disadvantage when consumers compare fares while searching for flights online.
