American may soon offer gift cards and miles for overbooked flights
Back when oversold flights were a "thing," flexible flyers knew to ask about the possibility of getting bumped.
When a flight approaches capacity, airlines have two choices: solicit volunteers to take a different flight or pay involuntary denied boarding compensation, which can get as high as $1,350 under Federal Aviation Administration regulations.
Carriers have long offered compensation to get passengers to consider voluntarily switching flights. After all, it pays to offer someone $500 to take a later flight — as opposed to involuntarily bumping the last passenger for $1,350.
In recent years leading up to the pandemic, American Airlines has gotten even savvier about oversold flights. In May 2019, the Fort Worth-based carrier started soliciting volunteers in the mobile app. And then six months later, AA began paying volunteers different amounts based on in-app bids, all in an effort to reduce the total compensation distributed.
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Either way, if you were bumped from an American flight, you were given either a travel voucher for use on a future AA ticket or – in some cases – cash for being denied boarding involuntarily.
But now, the carrier is paving the way to offer additional compensation options for voluntary denied boardings. Per an update to the Conditions of Carriage, American will now offer “compensation… in the form to be determined by American.” Previously, this legally binding document referenced only "travel credit."
When asked about the change in wording, a spokesperson offered:
This change provides American the opportunity to offer different forms of compensation to our passengers who volunteer to take a different flight when their scheduled flight is full.
The spokesperson said both gift cards and AAdvantange award miles are under consideration as forms of compensation.
Should AA decide to move forward with these new options, perhaps it can convince more flyers to volunteer. Depending on the mileage amount, it could definitely make sense to choose AAdvantage miles in lieu of travel credit. After all, there are still some incredible sweet spots on the AA award chart.
Unfortunately, AA didn't have a timeline or further details to share about the potential new compensation methods. It's possible that AA will also roll out a more automated volunteer process as well. Right now, processing volunteers requires manual intervention by a gate agent.
Of the Big 3, American's compensation options are the weakest. Both Delta and United offer a more comprehensive selection of choices. Delta volunteers receive a gift card that can be redeemed at one of 10 retailers: Delta, American Express, Amazon, Best Buy, Bloomingdales, Macy’s, Marriott, Nordstrom’s, Royal Caribbean and Target. These gift cards are fully transferrable and combinable.
Related: Tips and tricks for how to handle oversold flights
United, on the other hand, offers travel vouchers or MileagePlus miles when soliciting volunteers.
In the meantime, American likely doesn't have much trouble getting people to switch off of full flights. With the pandemic raging on and people looking to maximize their personal space, American will notify travelers should flights approach capacity. If your flight is eligible, you can make a fee-free change to an emptier flight.
That way, the traveler gets a shot at some extra space — and American likely doesn't need to offer any compensation.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.