I took two flights on American Airlines yesterday, and they basically summed up my experience of getting upgraded on the airline, in a nutshell.
Why American Airlines first class upgrades are harder
Over the years, all airlines in the United States have gotten much better at monetizing their premium cabins. Back in the day, airlines maybe sold a few first class seats per flight at exorbitantly high prices, and then the rest of the seats were filled with those receiving upgrades, as an incentive for loyalty. That’s no longer the case. For example, in 2022, an American executive indicated that the airline was selling around 80% of its first class seats.
American upgrades becoming tougher comes down to several factors:
- American is pricing first class on domestic flights more reasonably to begin with, and when you combine that with the strong demand for premium leisure travel, a good number of seats are just being sold directly; I’ll often just buy first class, as the math often checks out
- American then sells upgrades for cash to passengers booked in economy, and they’re often very attractively priced, as the airline would rather have some revenue than no incremental revenue
- American’s pilot contract gives deadheading pilots priority on the airport upgrade list over anyone else on the upgrade list; so sometimes the last couple of available first class seats go to pilots rather than customers
- American now offers unlimited complimentary upgrades for all elite tiers, and each elite member can have a companion; so if there are two first class seats left, that could go to a higher tier elite member and their companion, rather than two high tier elite members
- American’s Loyalty Points system makes it easy to earn elite status with credit card spending, and I get the sense that this has greatly swelled elite ranks, so upgrades are very competitive
Let me be clear, I don’t blame American (or any other airline) for trying to monetize its premium cabins best it can. However, I also think this is a double edged sword for airlines. Historically, loyalty programs have been the biggest cash cows for US airlines, and the single biggest reason that people are loyal is for upgrades.
I don’t have a right answer as to what the right mix of paid seats vs. complimentary upgrades is. But I don’t think any high tier elite member feels great when they’ve put a lot of effort into earning elite status, only to not have their upgrade clear within their elite window, and to instead be offered an upgrade for a fairly small amount of cash.
My experience with Executive Platinum upgrades
For some background, I’ve had American AAdvantage Executive Platinum status for nearly 15 years. That’s American’s highest elite tier with published requirements, with the only higher tier being invitation-only Concierge Key status.
Back in the day, upgrades as an Executive Platinum were a near guarantee. Most years I’d fly American 100 segments, and I could count on one hand the number of upgrades I didn’t clear. When I didn’t clear upgrades, I was almost always the first or second person on the upgrade list. In fairness, let me acknowledge that’s not good business for the airline, so I’m not suggesting that’s how things should be. 😉
But nowadays my experience is basically the opposite extreme. Let me acknowledge that I’m just about at the bottom of the totem pole among Executive Platinum members. American awards status based on the Loyalty Points system, and upgrades within each elite tier are prioritized based on your rolling 12-month total of Loyalty Points.
I earn pretty close to the absolute minimum Loyalty Points required for status, since I’m not going to spend an unnecessary amount on my American credit card. Therefore I’m among the last Executive Platinum to get an upgrade. What’s interesting to me is how “extreme” my upgrade list situations seem to be. For example, yesterday I flew from Miami to Chicago to Billings.
On the Miami to Chicago flight, I was number eight on the upgrade waitlist, with no seats remaining.
Meanwhile on the Chicago to Billings flight, everyone cleared their upgrades, and there was no one on the upgrade list.
I find this to be pretty standard for my upgrade luck with American. More often than not when I don’t clear my upgrade, I’m not even in the top five on the list. Let me clarify that I’m not usually traveling on Monday mornings or Thursday evenings, so I’m not traveling during peak periods. Meanwhile when I do clear my upgrade, it’s in situations where there are very few people on the upgrade list.
Despite all elite tiers being eligible for complimentary upgrades, I’m definitely finding upgrade lists to be more “top heavy” nowadays, whereby as a “low ranking” Executive Platinum member, I’m about halfway down the upgrade list. It really seems to me like there are lots more Executive Platinum members than before. So when you combine that and fewer seats to upgrade to, I’ve been conditioned to no longer expect upgrades in any way.
Now, I’m not going to keep giving American the same, while getting less, so to me, this means I should adapt one of two strategies:
Bottom line
American has gotten much better at selling first class seats, and when you combine that with a bunch of other factors, first class upgrades have gotten much tougher. I don’t blame American for trying to sell first class seats and generate incremental revenue, but it also fundamentally shifts the value proposition of qualifying for elite status, and that’s a big money maker for the airline.
I’m curious if my experience is representative of what others are seeing as well, or if I’m just unlucky…
If you’re an American elite member, what has your experience been with upgrades, and how they’ve evolved over the years?
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