American Airlines customers flying on basic economy fares will no longer earn frequent flyer miles or points toward elite status, the carrier said this week.

“We routinely evaluate our fare products to remain competitive in the marketplace. Customers who purchase a Basic Economy ticket on December 17, 2025 and beyond will not earn AAdvantage miles or Loyalty Points towards AAdvantage status,” it said. “Basic Economy customers will continue to receive one free personal item and one free carry-on bag, free snacks, soft drinks and in-flight entertainment.”

Elite loyalty members will still be eligible for first-class upgrades on domestic flights if they’re on basic economy tickets, an American spokeswoman told CNBC.

Basic economy tickets are airlines’ cheapest but most restrictive fares, rolled out across the industry over the past decade. Generally, they do not allow customers to change their tickets without fees or pick their seats in advance.

The move comes as airlines across the board have been chasing customers who are willing to spend more to fly. American has fallen behind large rivals Delta Air Lines and United Airlines in the post-Covid luxury travel boom.

American’s change, posted earlier by X user JonNYC, follows a similar policy by competitor Delta Air Lines, which said travelers on its Delta Main Basic, or basic economy tickets, wouldn’t receive Delta SkyMiles.

United Airlines does allow its MileagePlus loyalty program members to earn miles on basic economy tickets, but it has a different limitation: Basic economy customers on most flights aren’t allowed to bring a carry-on bag.

American had the same restriction after it launched basic economy fares but backpedaled in 2018.

Southwest Airlines this year launched its first no-frills basic fares that stipulate those customers will board last and get a seat assignment at check-in and earn miles at a lower rate than more expensive fares.

American Airlines is about to fly passengers to California for the first time on a skinny, long-range plane that it hopes will change air travel. The airline’s head of network planning now has to decide where else it should fly.

The first Airbus A321XLR for a U.S. airline is scheduled to take off from John F. Kennedy International Airport in New York on Thursday, bound for Los Angeles International Airport.

The XLR stands for extra long range, and with the ability to go up to 4,700 nautical miles, the plane can fly much farther than cross-country, though New York to Los Angeles is a highly lucrative route.

American will focus on routes to smaller European cities from its Philadelphia hub or from New York City that might not warrant the planes in its fleet that are larger and more expensive to operate, like a Boeing 777 or Boeing 787 Dreamliner.

American’s senior vice president of network and schedule planning, Brian Znotins, suggested in an interview with CNBC that he is considering destinations like Bordeaux and Marseille in France; Oslo, Norway; Stockholm; Copenhagen, Denmark; and Mallorca and Seville in Spain.

“It really opens up the menu for all these destinations that are just too small for a widebody,” Znotins said.

The airline will debut the planes in Europe starting in March with a nonstop flight from New York to Edinburgh, Scotland.

Airlines are increasingly turning to smaller planes for longer, nonstop flights. JetBlue Airways said it would push its Airbus A321LR — a plane that sits between a regular 321neo and an XLR, for flights to Barcelona, Spain, and Milan next year. The XLR first debuted on American’s partner, Spanish airline Iberia, in November 2024.

The carrier is focusing heavily on premium seats that will take up a fifth of the plane as its executives try to catch up to more profitable rivals Delta Air Lines and United Airlines. Those two airlines in the first nine months of the year together accounted for nearly 98% of the profits of the four biggest U.S. carriers — which also include American and Southwest Airlines.

Unlike American’s Airbus 321T that has 102 seats and separate first-class and business-class cabins, the 321XLRs will have 155 seats: 20 in business class, 12 in premium economy and 123 in main cabin. That is still fewer than the standard Airbus A321s that are in American’s fleet and have 190 seats.

The new interior, with dark blue and caramel hues, is meant as an “ode to Americana,” said Rhonda Crawford, American’s senior vice president of customer experience design, who previously worked at Delta.

The privacy doors on the suites, however, won’t be able to be closed until early next year because of a certification hold up, an issue that has delayed deliveries of new planes as airlines seek more and more premium seating.

American ordered 50 of the XLR jets in 2019. The carrier said it expects to have 40 XLRs by the end of the decade. United also has the planes on order and expects to receive the first next year.

American retired its Boeing 757s and 767s, planes used often for international routes, during the pandemic and is now looking to rethink its network, while United — and Delta to a lesser degree — held onto older long-range jets.

American has also been increasing its investment in cabin refreshes and larger lounges. The airline said Wednesday that it will revamp its Admirals Club at Ronald Reagan Washington National Airport to grow seating by 50%.

As it makes those investments, the company’s executives are now trying to balance spending money — on items including new lounges and Champagne — with making money.

“You’re not going to close the margin gap by just continuing to drive only cost,” Nat Pieper, American’s newly appointed chief commercial officer and a longtime airline executive, told CNBC. “Is American going to spend more to be able to go chase premium revenue and improve our top line? Yes, we are, but let’s do it smartly.”

American was the first of the U.S. carriers to place an order for the XLRs more than six years ago. The planes have an extra fuel tank that gives them longer range, ushering in an era of leaner flying for long routes that can easily top eight hours, and testing passengers’ willingness to take a smaller jet.

The 321XLR also shows how airplane manufacturers Airbus and Boeing have continued to build upon older designs of aircraft over creating an all-new plane.