Make Sure to Book AAdvantage Awards Before up to 56% Increase
In early December, American Airlines announced award chart changes with the cost of some flights increasing by up to 56% for awards booked on or after Jan. 16, 2019. However, unlike other broad-scale devaluations — like we saw in early 2016 — this devaluation only targets certain regions.
The good news: You still have time to book with the old rates. And you'll definitely want to do so if you're looking to book one of these trips with AAdvantage miles.
Here are the regions that are changing for award tickets booked starting Jan. 16, 2019:
First Class Flights to Hawaii
For awards booked through Jan. 15, 2019, all front-cabin awards to Hawaii cost just 40,000 miles each way. Starting Jan. 16, 2019, this will jump to at least 55,000 miles each way. A 38% increase would be bad enough, but it gets worse. If the ticket "includes travel on an aircraft that offers lie-flat seats," there's a 7,500-mile surcharge. That means that the best awards to Hawaii are going to cost 62,500 miles each way. That's a 22,500-mile increase over the current rate — which represents a drastic 56% increase.
Lie-Flat First Class on Domestic Flights
While the standard domestic first-class awards will remain at 25,000 miles each way, American Airlines is increasing the award price on lie-flat domestic first-class awards. Like the Hawaii awards above, there's going to be a 7,500-mile surcharge for all awards that "includes travel on an aircraft that offers lie-flat seats." Previously, this surcharge was only charged on three-cabin aircraft such as American Airlines' A321T that operates from New York (JFK) to Los Angeles (LAX) and San Francisco (SFO).
It's certainly understandable that AA would want to add this surcharge on transcontinental lie-flat flights — like the 777 operating between Miami (MIA) and LAX. However, this surcharge doesn't seem to be justified on other routes such as the 1.5-hour flight from Charlotte (CLT) to Philadelphia (PHL).
After this change goes into effect, you'll certainly want to look into whether it's better to book these awards with British Airways' distance-based award chart rather than through AAdvantage.
Lie-Flat Business Class to Canada and Alaska
American Airlines doesn't have many lie-flat options to Canada and Alaska. Only the new 787-8 Dreamliner route between Dallas/Fort Worth (DFW) and Anchorage (ANC) comes to mind. But, for awards booked starting Jan. 16, 2019, these awards are increasing by 7,500 miles each way, as AA has added the condition: "If the award includes travel on an aircraft that offers lie-flat seats in the US and Canada, the Business/First levels will be 7,500 miles higher than what is shown in the chart above."
| BUSINESS CLASS | Current | New Rate | Change | % Change |
|---|---|---|---|---|
Domestic (lie-flat, non-transcon) | 25,000 | 32,500 | 7,500 | 30% |
Canada (recliner seat) | 30,000 | 25,000 | -5,000 | -17% |
Canada (lie-flat) | 30,000 | 32,500 | 2,500 | 8% |
Alaska (lie-flat) | 30,000 | 37,500 | 7,500 | 25% |
Hawaii (recliner seat) | 40,000 | 55,000 | 15,000 | 38% |
Hawaii (lie-flat) | 40,000 | 62,500 | 22,500 | 56% |
Lie-Flat Business Class to Caribbean, Mexico, Central America and South America Region 1*
Although the base rate for awards to all of these regions are remaining the same, there's a critical change to each of these regions: an (ambiguous) asterisk. Starting Jan. 16, 2019, each of these regions has an asterisk next to the region name. In the key, this asterisk signifies, "If the award includes travel on an aircraft that offers lie-flat seats in the US and Canada, the Business/First levels will be 7,500 miles higher than what is shown in the chart above."
However, each of these regions are outside the US and Canada. So, it's unclear if this surcharge is only going to apply when there's a lie-flat seat on domestic connection or if this will apply to all flights that include lie-flat aircraft options.
Awards to Canada Dropping In Price
It's not all bad news, though. If you're looking to book an award between the US and Canada, you'll want to wait until Jan. 16, 2019, to do so. Starting then, award flights to Canada will be treated the same as award flights inside the US.
That means that MileSAAver economy awards will drop from 15,000 miles each way to just 12,500 miles each way, and domestic first-class awards will drop from 30,000 miles each way to 25,000 miles each way.
If your award flight to Canada is nonstop and fewer than 500 miles, you'll still get the same 7,500-mile saver awards in economy and 15,000-mile saver awards in domestic first class. However, you'll save 5,000 off both economy and domestic first class AAnytime Level 1 awards and 10,000 off both economy and domestic first class AAnytime Level 2 awards.
Sadly though, Canada still hasn't been added back to AA's Reduced Mileage Awards, which allow eligible cardholders to book awards for as few as 6,500 miles each way.
Bottom Line
It's understandable that AA wants to increase awards on flights where passengers are currently getting outsized value from their miles. So, it makes sense that AA would want to increase award prices for lie-flat business-class flights to Hawaii and transcontinental flights.
However, these changes go too far. There's no justification for charging 32,500 miles one-way for a domestic first-class award on the 1.5-hour flight from Charlotte to Philadelphia just because AA happens to be positioning an internationally configured aircraft between the two airports. And it seems punitive to spike the award price for lie-flat business-class flights to Hawaii from 40,000 miles to 62,500 miles each way. That makes lie-flat awards to Hawaii more expensive than lie-flat awards to Europe, South America, Japan and South Korea.
Interestingly, the winners of these award chart changes are American Airlines elites. With premium-cabin award prices jumping up 56% on some flights, there should naturally be fewer passengers booking premium-cabin seats. With these routes covered by 500-mile upgrades, there should be more empty front-cabin seats — meaning more elite upgrades will likely be able to clear into first class.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 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. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
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 $8,000 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.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.