You can now earn miles and Loyalty Points from paid upgrades on American Airlines

The moment has finally arrived.

At last, you can earn AAdvantage miles and Loyalty Points from upgrades purchased on American Airlines flights. This was initially hinted at by the Texas-based airline earlier this year, with a commitment to launch by the end of 2024.

Moving forward, any paid upgrades bought on or after August 14 will qualify for miles and Loyalty Points.

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The mileage earning rates will align with those of standard paid tickets. You'll accumulate miles based on the cost of the upgrade, with bonus tiers for elite members, as detailed below.

• AAdvantage member: 5 miles per dollar
• Gold member: 7 miles per dollar
• Platinum member: 8 miles per dollar
• Platinum Pro member: 9 miles per dollar
• Executive Platinum member: 11 miles per dollar
• Concierge Key member: 11 miles per dollar

For instance, if an upgrade is priced at $75, you can earn between 375 and 825 AAdvantage miles, depending on your membership level. Based on TPG's August 2024 valuations, American miles are valued at 1.7 cents each, meaning this could yield a rebate between $6.38 and $14.03 for a $75 upgrade.

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Alongside redeemable miles, travelers aiming to boost their status will earn Loyalty Points on upgrade purchases just like they would with a standard paid ticket. The Loyalty Points earned from an upgrade will match the amount of redeemable miles accrued.

For instance, an Executive Platinum member would gain 825 AAdvantage miles for a $75 upgrade, along with 825 Loyalty Points for that transaction.

After completing their journey, the miles and Loyalty Points from an upgrade purchase will be credited to each traveler's individual account.

The introduction of earning miles and Loyalty Points from paid upgrades is undoubtedly a significant enhancement to the AAdvantage loyalty program.

In recent years, U.S. airlines have become more proactive in offering paid upgrades after you've booked your flight. These upgrade options are priced dynamically based on current availability and can sometimes be a fantastic bargain compared to outright buying a premium cabin seat.

Although this push for paid upgrades has led to fewer complimentary upgrades for elite members, it makes sense for American Airlines to capture as much demand for premium cabins as possible.

Until now, the airline has not permitted loyalty members to earn miles and status credits from upgrades. For me, this has typically discouraged taking advantage of these offers, leading me to switch my ticket to a business or first-class fare if it became more affordable later on.

However, I’m now more inclined to consider purchasing an upgrade with American the next time I encounter a reasonable offer.

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American's key rivals, Delta Air Lines and United Airlines, also offer post-booking upgrades on certain flights. With Delta, upgraded tickets qualify for additional mileage and elite qualifying accruals associated with the upgraded seat. Meanwhile, United allows you to earn more status credits (Premier qualifying points) with post-booking upgrades, but you won't receive any extra redeemable miles.

Consequently, with this new policy, American will align with Delta in providing the most extensive loyalty benefits for travelers opting for upgrades.

Alongside earning miles and status credits from upgrades, American has promised further enhancements to its loyalty program later this year. These improvements include the option to request systemwide upgrades online and the ability to redeem miles for upgrades with a wider range of airline partners.

This feature is still set to launch later this year, although the exact date remains undisclosed.