Skip to content

American Airlines is exploring new ways to compensate passengers

June 21, 2020
4 min read
20191028_DFW-Airport_American-Airlines-787-taking-off-from-DFW_JTGenter
American Airlines is exploring new ways to compensate passengers
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

There are so many moving parts in the aviation industry that even on the best airlines things are bound to go wrong from time to time, from bags going missing to seats being broken or even a flight attendant accidentally spilling a drink on you during meal service. It's important to have a positive attitude and not let minor slip-ups ruin your trip, so long as the airline takes reasonable steps to address the issue and provide compensation where necessary.

About two years ago American Airlines introduced the "iSolve" tool, which let flight attendants offer onboard compensation (primarily in the form of bonus AAdvantage miles) from their tablets. View From The Wing reported earlier this month that American suspended the iSolve tool, and now appears to be surveying customers on alternate forms of compensation it can offer. Some of the possible options include:

What's interesting to note is that the new options being surveyed generally don't cost the airline much and appear to reflect a desire not to add more liabilities to the balance sheet just a few months after receiving a $5.8 billion government bailout. Adding one incremental visitor to an Admirals Club likely costs the airline a negligible amount, as does an in-flight Wi-Fi pass. Priority boarding is an interesting benefit to offer right now, especially as airlines around the world are rethinking the way they board planes to promote social distancing amid the ongoing coronavirus pandemic.

We asked readers in the TPG Lounge which of these options they'd prefer, or what other forms of compensation they'd like to see, and the results were pretty unanimous. Nechama K. pointed out that if you already have benefits like Admirals Club access and priority boarding due to your elite status, these benefits wouldn't be very helpful. In fact it seems like AAdvantage elite members -- the very customers the airline wants to keep happiest -- would get the least value out of any of these forms of compensation. Andy R. voiced a pretty common opinion, saying "1,000 AAdvantage miles is better than any of those options. I know they don't want to do that, but that still costs the airline nearly nothing."

A number of readers were also excited about the idea of receiving Admirals Club day passes. These lounges are generally only accessible to paying members, top-tier elites and certain credit card holders. While the quality varies heavily from location to location, making up for a service failure with an upgraded airport experience sounds like a good idea.

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

Reader Kyle L. suggested a sliding scale based on the severity of the incident, which raises an important point. While these options might be suitable compensation for something like a broken seat or running out of food on a shorter flight, they wouldn't come close for a business class passenger with an inoperable IFE screen on a 15-hour long-haul flight. That's one of the beauties of using bonus miles as compensation: it's much easier to adjust the amount given to match the specific issue.

Bottom line

Just weeks after removing its "iSolve" system for in-flight compensation, American Airlines has begun surveying passengers looking for alternate ways to make up for service issues. Based on the limited choices included in the survey and the initial response from a number of TPG readers, it's clear that AA needs to revaluate as most people would simply prefer miles. Many of the benefits listed here are redundant for frequent travelers with elite status, the very customers AA needs to be keeping the happiest.

TPG featured card

Best for businesses with high spending
TPG Editor‘s Rating
4.5 / 5
Go to review

Rewards

2 - 10X miles

Intro offer

LIMITED-TIME OFFER: Earn up to 400K bonus miles

Annual Fee

$395

Recommended Credit

740-850
Excellent

Why We Chose It

The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)

Pros

  • The Capital One Venture X business card has a very lucrative welcome offer.
  • In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
  • Business owners are also able to add employee cards for free.

Cons

  • The card requires significant spending to earn the welcome offer.
  • Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
  • LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
  • Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
  • Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
  • With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
  • Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
  • Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
  • Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
  • Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
  • This is a pay-in-full card, so your balance is due in full every month
Apply for Capital One Venture X Business
at Capital One's secure site
Terms & restrictions apply. See rates & fees
Best for businesses with high spending
TPG Editor‘s Rating
4.5 / 5
Go to review

Rewards Rate

2X miles2 miles per dollar on every purchase
5X miles5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel
10X miles10 miles per dollar on hotels and rental cars booked through Capital One Business Travel
  • Intro Offer

    LIMITED-TIME OFFER: Earn up to 400K bonus miles
  • Annual Fee

    $395
  • Recommended Credit

    740-850
    Excellent

Why We Chose It

The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)

Pros

  • The Capital One Venture X business card has a very lucrative welcome offer.
  • In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
  • Business owners are also able to add employee cards for free.

Cons

  • The card requires significant spending to earn the welcome offer.
  • Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
  • LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
  • Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
  • Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
  • With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
  • Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
  • Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
  • Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
  • Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
  • This is a pay-in-full card, so your balance is due in full every month