Robert Isom says American customers will pay more for upgrades

Robert Isom said American’s app now steers customers toward paid upgrades after Basic Economy cuts, sharpening the airline’s loyalty shift.

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Rachel Morgan
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Business journalist covering startups, venture capital, and Silicon Valley culture. Former editor at Forbes Entrepreneurs.
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Robert Isom says American customers will pay more for upgrades

American Airlines chief executive said Wednesday the carrier wants its app to do a better job of steering travelers toward paid upgrades, after a year of changes that stripped more value from Basic Economy tickets and loyalty perks. Speaking at the 42nd Annual Strategic Decisions Conference, Isom said American had gone through “a couple of phases of redesign” of its mobile app and that it now “definitely does a better job of laying out what’s available and why there's benefit to potentially paying some more.”

The comments land after American eliminated mileage earning on Basic Economy tickets in December 2025, then in May 2026 cut elite benefits on those fares even further. As of May 2026, elite members flying Basic Economy no longer get complimentary seat selection before check-in or upgrade eligibility, and the changes also apply to elite passengers from oneworld partner airlines. On many domestic routes, moving from Basic Economy to Main Cabin can cost about $35 each way, while seat-selection fees can run from about $15 to $75 per segment depending on the route and seat.

Isom’s message was blunt when asked whether American wanted to sell more buy-ups instead of giving away free upgrades. “Absolutely,” he said, comparing the strategy with “pre-purchase bags, checked baggage.” The airline has already gone further in reshaping the value of its loyalty program: last summer it eliminated traditional mileage upgrades altogether, and it now lets members use miles like cash to pay for post-purchase buy-up offers at low value per point. That makes the app a sales tool as much as a travel companion, with the screen increasingly doing the work of the gate agent.

For flyers who used to count on elite status to soften the cost of a Basic Economy fare, the pattern is hard to miss. Basic Economy once still offered some status-based benefits, but American has steadily narrowed them, first by ending mileage earning and then by removing advance seat access and upgrades. The result is a loyalty program that still carries a premium name, even as more of its practical value gets pushed toward paid add-ons.

Isom closed by framing the tradeoff as part of the airline’s broader loyalty pitch, saying, “Everybody wants an AAdvantage mile.” The question now is less whether American will keep pushing customers toward paid extras than how far it can go before Basic Economy ceases to feel like a ticket and starts to look like a menu.

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Business journalist covering startups, venture capital, and Silicon Valley culture. Former editor at Forbes Entrepreneurs.