Loyalty Economics

We’ve Been Saying There’s Little Reason To Chase Airline Status. Now There Should Be No Question

By Noah Weidner
Airline Loyalty Program

We’ve Been Saying There’s Little Reason To Chase Airline Status. Now There Should Be No Question

We’re in the homestretch of 2026, but as rough as it's been, US-based travelers have little to look forward to in 2027. A big part of the problem? Things keep getting worse for frequent flyers… except maybe the few who rank among the top 1%.

It’s probably not worth getting existential about airline status, as many in the industry are, but as airlines emphasize the value of their credit card businesses, frequent flyer programs, and premium onboard experiences, high-dollar travelers are getting less and less for their loyalty.

Times are-a-changin’ (but that’s nothing new): If you’ve been here for a while, you know we have thoughts. In 2024, we made the case that most travelers would be better off shopping for the cheapest fare and spending on a general-purpose credit card rather than entering the gauntlet that has become airline frequent flyer programs. Here, a growing number of status holders have been fighting for even fewer cushy seats. Recent changes show that airlines have few options left but to raise the bar to even make the upgrade waitlist or earn things we once took for granted. The bad news is that it seems to be happening to everyone.

  • Earlier this year, United changed MileagePlus to cut earnings for those without a United card, reduce benefits for basic economy travelers, and introduce new Basic fares in all classes — making it even harder to earn status.
  • Southwest also spent the week continuing its desperate bid to be taken seriously amid its post-private-equity takeover identity crisis by destroying its Rapid Rewards program and requiring spending to unlock status and its prized Companion Fare.

Nothing Can Stop the Bank-ification

People used to say the airline industry was the only industry that could turn billionaires into millionaires. United and Delta proved that bank card partnerships and frequent flyer program rewards could make them much more profitable; airlines are now banks on wheels. It probably makes the most sense to get off the treadmill.

  • With <50% of Americans flying every year, a minority of flyers testing frequent flyer programs are likely to get beaten by more affluent flyers with massive credit card velocity and big airline spending—leaving them with no reward for the trouble.
  • The end of American’s AAdvantage relationship with Hyatt also shows loyalty is always in flux: one day you’re double-dipping, the next you’re losing a valued program.

You are worth what you can spend: The airline industry's gradual enshittification keeps reminding you that you are only worth what you spend every year. To airlines, that’s business. But as airlines emphasize ‘premium’ everything, folks can fight back by embracing non-cobrand cards like the Robinhood Gold Card (3% back on most everything) or a points card like the Amex Gold Card (4x MR back on groceries and dining) to keep their options open. You’ll probably get more value with cash or points in your pocket than with the promise of upgrades you’ll never get. After all, these systems aren’t designed to reward you — there’s a reason the airlines call the few and lucky upfront ‘elites.’