American Airlines will let travelers mix cash and miles to pay for flights

American Airlines is set to allow customers to combine cash payments with miles earned through its AAdvantage loyalty program to pay for flights. The airline announced the new policy on Friday, stating it will offer passengers more flexibility in covering the costs of domestic trips. However, flights to and from Alaska and Hawaii will not be included in this offering. The airline plans to expand the feature to more routes in the coming weeks, though a specific timeline has not been disclosed.

AAdvantage members will be able to book their preferred flights directly on American's website or mobile app. Upon logging into their loyalty account, customers will be prompted to select their desired flights first. On the checkout page, the available cash and miles options will be displayed, and an interactive slider will enable members to choose the combination of cash and miles to apply towards their purchase.

This move comes as American Airlines aims to provide greater value to its customers, allowing them to maximize the benefits of their memberships. The airline joins competitors Delta Air Lines and United Airlines, which already offer similar flexible payment options. American Airlines also recently launched a limited-time promotion to boost its market share, granting travelers with status on competing airlines the equivalent status tier on American flights, provided they submit proof of their status with Delta SkyMiles, JetBlue TrueBlue, or other reward programs. The airline will then issue an Instant Status Pass, valid for four months.

The airline industry has been grappling with significant challenges in recent times, with airline ticket prices surging following the war in Iran, which has caused a reduction in global oil supplies and driven up jet fuel costs. Jet fuel constitutes up to 30% of airlines' operating expenses. Hopper, a fare aggregator, predicts that airfares this holiday season will reach a 10-year high, with round-trip flight prices around Thanksgiving already up 31% compared to last year.