Using frequent flyer miles to upgrade on American Airlines? The company is making those miles worth less by increasingly requiring cash co-payments.
For international routes, the co-payment goes up $50, but more importantly, they’re introducing a cash co-payment requirement for upgrades on flights between Hawaii and the mainland. This is something they never did before.
Here’s the official line:
Effective March 1, 2007, a nonrefundable co-payment of $150 will be required to claim Upgrade Awards used with most Discount and Deep Discount Economy fares when traveling between the Continental U.S. / Canada / Mexico / the Caribbean and Hawaii. Additionally, effective March 1, 2007, the co-payment that applies to Upgrade Awards between North America and Europe, India, Japan/Northern China, and Deep South America will be increasing to $300.
Even with a co-pay, Upgrade Awards provide AAdvantage members with exceptional value since they can be used with deeply discounted tickets. With fares so low, the disparity between Discount and Premium Class fares is too great to be offset by miles alone. Rather than limit Upgrade Awards to full-fare tickets only, the addition of a co-pay will allow members to continue to use their miles to upgrade even if they purchase discounted fare tickets.
Gary Leff expressed his disdain for this change, especially regarding the Hawaii fees, and I agree with him. American has been charging money for international flights for some time (boo, hiss) but they’ve been getting away with it, so it’s no big change. Sure, money is money, and $50 each way is not nothing, but the new fees for Hawaii are the bigger issue.
From the airline’s point of view, this is understandable, since there are bound to be plenty of people (say, honeymooners) willing to pay. But why stop there? Sure, demand outstrips supply for upgrades to Hawaii, but the same could be said of flights between L.A. and New York. Why not charge fees for those, too? Heck, charge for every upgrade!… Sadly, it could happen.
Full details of AA’s new upgrade policy are here.