American Unshackles the Miles

Posted by: Justin Bachman on May 12

Kudos are in order for American Airlines’ (AMR) decision to give members of its frequent-flier program new flexibility on using those miles. The second-largest U.S. airline will now let travelers book one-way trips with miles and different classes on the same itinerary. That means you can now book a one-way ticket for 12,500 miles. And, for example, maybe you want to embark on your European holiday in first-class and return home in coach. That wasn’t possible before. The changes also allow AAdvantage members to book multi-destination trips, another overdue revision from the former, rigid round-trip requirement.

American is looking to these “Flex Awards” as a way to spur travel at a time when many companies and leisure travelers are fearful about the economy. This will likely help fill some seats, with the effect of additional sales and ancillary upselling. But to my mind, long after the current troubles pass, this common-sense flexibility is decades overdue. (Disclosure: I am not a member of American’s mileage program.) Those who collect these miles – an asset with a tangible value – are airline creditors who often feel as if the value has been eroded by difficulty of redemption. Let’s hope that other airline-debtors feel compelled to match.