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Four Major Changes Will Be Made to American Airlines Advantage Program in 2024

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Four Major Changes Will Be Made to American Airlines Advantage Program in 2024

Four Major Changes Will Be Made to American Airlines Advantage Program in 2024. American Airlines Chief Commercial Officer, Vasu Raja, recently provided a sneak peek into major transformations coming to the AAdvantage frequent flyer program in 2024. During the airline’s internal podcast for employees, Raja shared details about four significant changes aimed at enhancing customer benefits and loyalty.

Variable Mileage Earn for Enhanced Rewards

In a bid to make AAdvantage the most valuable rewards program, American Airlines plans to introduce variable mileage earn. Customers can expect to earn more miles based on their point of sale, with additional rewards for using the airline’s app or website. Moreover, holding a co-branded credit card will offer increased earning potential, revolutionizing the way miles are accrued.

Revamping Rewards from Status

Raja hinted at redefining the rewards structure tied to status levels. While recent years saw rewards decoupled from specific status milestones, the upcoming changes aim to make status more rewarding. The shift is anticipated to offer unique and unmatched perks to members, encouraging loyalty beyond traditional status benefits.

Redemption Price Changes for Partner Awards

American Airlines is set to shake up redemption pricing not only for its flights but also for partner awards. While the elimination of ‘saver’ and ‘anytime’ award charts for the airline’s own flights made waves, Raja’s statement suggests a similar dynamic pricing model for partner awards. This move could potentially lead to more accessible and cost-effective redemption options for travelers.

Enhancements to Credit Card Value Proposition

Anticipate expanded value through American Airlines’ credit cards, with a focus on providing customers with more benefits. Raja expressed enthusiasm for further developing the value proposition associated with credit cards, suggesting additional perks and advantages for cardholders. This could potentially include incentivizing direct bookings and strengthening the tie between credit card usage and rewards.

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Concerns and Hopes for Partner Awards

While these changes bring exciting prospects, there are concerns about the potential impact on partner award travel. Partner awards currently offer exceptional value within the AAdvantage program, and any alterations to their pricing could alter this dynamic. The hope remains that the value-driven partner award redemptions, such as those with Qatar Airways and Alaska Airlines, will remain intact, preserving the unique appeal of the AAdvantage program.

Conclusion 

American Airlines is gearing up for a transformative year in 2024, with a focus on making AAdvantage more valuable, rewarding, and accessible for its loyal customer base. Stay tuned for further details as the airline continues to unveil the specifics of these exciting changes.

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Airlines

Japan Airlines counts the cost of Tokyo crash

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Japan Airlines counts the cost of Tokyo crash

Japan Airlines counts the cost of Tokyo crash, Flights at Tokyo Haneda airport continue to experience disruptions following a fatal collision between a Japan Airlines aircraft and a smaller plane on the runway. The incident, resulting in five fatalities, prompts investigations by transport authorities to prevent such tragedies in the future.

Market Fluctuations Post-Accident

Upon the reopening of markets after Japan’s New Year’s holidays, Japan’s second-largest airline, Japan Airlines, witnessed a surge in sell orders. Despite the initial setback, the share price managed to recover by the end of the trading day.

Financial Impact and Insurance Coverage

Japan Airlines updated investors, highlighting the coverage of the loss of the Airbus A350 aircraft through insurance. However, additional costs are anticipated, including offering ticket refunds to customers with reservations through March 31, 2023, who wish to cancel their flights. The estimated operating loss for the airline stands at approximately ¥15 billion ($105 million), a significant challenge considering the airline’s recent recovery from pandemic-related losses.

Short-Term Setbacks, Long-Term Resilience

The tragic incident is expected to impact the airline’s earnings for the year to March. Despite this setback, JAL’s longer-term prospects appear resilient. While airline demand in Asia has lagged behind the US and Europe post-pandemic, JAL’s full-service flights have already seen passenger revenue return to pre-pandemic levels. Operating margins have improved, thanks to price hikes and a substantial increase in the average revenue earned per passenger kilometer flown.

Growth Expectations and Market Outlook

Shares of Japan Airlines currently trade at 12 times forward earnings, a premium compared to US peer United Airlines. This reflects positive growth expectations and suggests that the market anticipates the airline’s resilience in the face of short-term challenges.

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Conclusion

Despite the immediate challenges posed by the Tokyo crash, Japan Airlines remains steadfast in addressing the incident’s aftermath. The airline’s financial resilience and positive market outlook indicate a potential recovery and continued growth, emphasizing its commitment to passenger safety and long-term success.

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