American Airlines announced on Friday, October 2, 2026, that it will soon allow travelers to pay for flights using a combination of cash and AAdvantage loyalty miles. The new policy, communicated in a memo to customers, will apply to domestic trips for U.S. members of the airline's loyalty program. While initial coverage includes domestic routes, flights to and from Alaska and Hawaii are currently excluded, though the carrier stated it plans to expand the offering to more routes in the future.
The move follows similar flexible payment structures already in place at competing carriers, including Delta Air Lines and United Airlines. For comparison, a United flight from Newark to Paris was recently listed with multiple payment options: all miles plus taxes, all cash, or a reduced cash price combined with 6,000 miles. American's implementation comes as airlines compete for high-spending customers through updated lounges, larger premium cabins, and in-flight Wi-Fi.
According to the carrier, the feature will be accessible via the American Airlines website and mobile app. During the checkout process, customers who are logged into their loyalty accounts will use an interactive slider to select their preferred ratio of cash and miles. In a separate effort to increase market share, American also announced a promotion granting equivalent status to travelers who hold rewards status with competitors such as JetBlue or Delta, issuing a four-month "Instant Status Pass" upon proof of eligibility.
This change affects AAdvantage loyalty program members who previously needed to accrue enough miles to cover the full cost of a reward flight or pay entirely in cash. While specific participation numbers for American's program were not reported, the airline industry overall is facing higher operating costs, with jet fuel accounting for up to 30% of expenses. The war in Iran has limited global oil supplies, contributing to this rise. Consequently, holiday airfares are expected to reach a 10-year high. Data from the aggregator Hopper shows Thanksgiving round-trip prices are already 31% higher than the previous year.
For a household, this tool may allow for a reduction in out-of-pocket travel costs by applying balances of miles that were previously unusable for full ticket redemptions. The exact value of a mile when used in this combination was not specified by the airline.
The policy shift aligns American Airlines' redemption technology with industry standards set by its primary rivals. The new payment slider is scheduled to roll out in the "coming weeks," according to the company's memo, though a specific effective date was not provided. Travelers interested in the "Instant Status Pass" promotion must submit proof of their status with competing airlines to qualify for the four-month trial period. American has not reported a specific deadline for the end of the status-match promotion.