Let's Talk Loyalty last welcomed American Airlines' AAdvantage onto the podcast show in 2020, when the world was gripped by the COVID crisis. Three years on, AAdvantage is back, as Paula Thomas of Let's Talk Loyalty sits down with Chris Isaac, director of the program, to hear how things have evolved in recent years.

AAdvantage is the longest-running travel loyalty program in the world, and has reached the milestone of having more than 100 million members worldwide. It no longer considers itself a frequent flyer program, but instead a travel rewards program. And now, it is again leading the industry with new ways for members to earn and keep their status in return for their loyalty within the AAdvantage ecosystem.

The pandemic opportunitiy

In April 2020, the global shutdown due to the pandemic forced airlines to reevaluate their loyalty programs. At that time, the airline industry came to a standstill, forcing airlines to adjust quickly. Chris discusses the journey American Airlines' loyalty program, AAdvantage, embarked upon during this unprecedented period.

Photo: Angel DiBilio/Shutterstock

Initially, the loyalty program was flight-based, offering status based on flight activities like earning tier miles. However, with travel halted, the program faced a challenge – how to reward and engage members who weren't flying. As time went on, AAdvantage observed significant engagement from members actively participating in non-flight-related activities like credit card spending, online shopping, and dining purchases. This realization led to a fundamental shift in how the program valued and rewarded these interactions.

The pandemic presented an opportunity to revamp the program's approach and to extend rewards beyond flight activities. Chris describes how they decided to introduce a simplified system of earning "loyalty points" alongside traditional miles, where these points could be earned from various activities within the AAdvantage ecosystem. This inclusive approach allowed members to earn status through a variety of means, including flight, credit card spending, shopping, and dining.

Photo: Vincenzo Pace | Simple Flying

Chris highlights the change in mindset brought about by the pandemic's clarity. While they didn't abandon flight-related benefits, they sought to expand their program's reach and be more inclusive of members who were supporting the airline through different channels.

Of course, there were challenges in making such a transition, especially in terms of technology and communication. A considerable investment went into developing the necessary infrastructure and ensuring that members understood the new approach. However, the result was a simpler and more accessible system where earning loyalty points translates directly into status.

The transformation also impacted how the airline's frontline staff interacted with members. With a broader range of members achieving elevated status, the staff needed to adjust their approach to cater to a diverse audience, some of whom might not be familiar with all aspects of airline travel.

Photo: American Airlines

Looking to the future

American Airlines' updated loyalty program, introduced a year ago, emphasizes flexibility and member engagement. The introduction of loyalty points allows rewards to extend beyond traditional status levels, catering to members who actively engage with the airline's ecosystem.

The new system enables continuous rewards starting at 15,000 miles and points, not limited to specific status tiers. The program's success has driven plans for further enhancements in 2024, prioritizing experiential rewards. Collaborating with MasterCard's "priceless" platform, members can now use miles for unique experiences globally, enhancing the travel journey.

Photo: Neste

Additionally, the airline is aligning with sustainability trends. They're investing in sustainable aviation fuel, aiming to replace 10% by 2030 and achieve net-zero emissions by 2050. This focus on environmental responsibility resonates with members, reflecting broader industry shifts and positioning the program for a more eco-conscious future.

Listen to the podcast

You can listen to the full podcast with Chris Isaac and Let's Talk Loyalty below: