Picture a traveler staring at a booking screen. The holiday fare to visit family is a little more than she planned to spend.
Her loyalty account holds a healthy stack of miles but not enough to cover the entire ticket price.
For years, that left two options. She could pay the entire fare in cash and leave her miles untouched. Or she could hold off on booking until she earned enough miles for a free ticket.
This small gap is where many loyalty points end up sitting unused. Now one of the world’s biggest airlines wants to close it.
Why airline miles matter more than ever
American Airlines is no newcomer to loyalty, given that it created the first airline loyalty program.
The airline itself is also hitting a big milestone. American Airlines (AAL) traces its roots to an air mail carrier in 1926, and it is celebrating its 100th year in 2026.
Also Read: American Airlines CEO delivers stark warning on rising fuel costs
Today, American runs more than 6,000 daily flights to more than 350 destinations in more than 60 countries. It serves more than 200 million customers a year.
Loyalty is also big business for the airline. At Morgan Stanley’s 14th Annual Laguna Conference on Sept. 16, CEO Robert Isom said:
- American expects about $8 billion in cash this year from its credit card partnership with Citi.
- He said that number should grow to over $10 billion by 2030.
- He also expects another $1.5 billion in pretax profit from the deal.
Put simply, every member who uses the program helps feed one of American’s biggest moneymakers.
American Airlines adds cash and miles booking option
Here’s the fix for American Airlines travelers. As the feature rolls out in the coming weeks, eligible AAdvantage members can combine cash and miles on aa.com and the American app.
“At American, we’re continually evolving the AAdvantage program to deliver more choice and flexibility for our members,” said Scott Long, American’s senior vice president of AAdvantage.
“The introduction of cash and miles is another step in our ongoing effort to provide AAdvantage members with more personalized ways to engage with the program and get more value from their membership,” he added.
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The process takes just a few steps:
- Log into your AAdvantage account and pick your flights with cash.
- Decide whether you want the optional trip insurance offer at checkout.
- Use a slider to choose your mix of cash and miles.
- Watch the cost summary update automatically.
- Enter your payment details and book.
In plain terms, you no longer need a full award balance to put your miles to work.
More AAdvantage rewards for members
Cash and miles is the newest piece of a wider push. American has also added several new Loyalty Point Reward options.
Members who reach 15,000 Loyalty Points in a membership year can choose two inflight food and beverage coupons.
Related: Southwest Airlines CEO says the quiet part about airfare out loud
New York Times subscriptions are also on the menu. At 15,000 Loyalty Points, members can pick 12 months of Games, Cooking, or The Athletic.
At higher levels, from 175,000 up to 750,000 Loyalty Points, members can choose 12 months of New York Times All Access, which includes News, Games, Cooking, Wirecutter, and The Athletic.
Million Miler members will soon get a wider selection of gifts at each milestone, too.
What American’s CEO says about loyalty
Isom spent much of his Laguna appearance promoting the program. He called AAdvantage the industry’s first and largest loyalty program.
“We’ve seen AAdvantage enrollments at record levels,” Isom said.
“We offer day in and day out more value in that program for our customers than anyone else,” Isom added.
He also explained why giving members more choice matters to the airline.
“What I really like is the flexibility of our offerings that just encourage a much, much tighter relationship in the American Airlines ecosystem,” he said.
Cash and miles fit that idea neatly. The easier it is to use miles, the more reason members have to keep earning them.
Robert Isom, CEO of American Airlines, expects the loyalty program to drive engagement.
Why loyalty matters for AAL stock
Despite a challenging macro environment, American Airlines has grown top-line revenue primarily due to strong customer demand.
On its second-quarter earnings call, the airline giant guided to 16% to 19% revenue growth in the third quarter.
Given consensus estimates compiled by TIKR, American Airlines is projected to increase revenue by 15.7% year over year to $63.21 billion in 2026.
However, it is expected to report a loss per share of $0.61 this year, compared to earnings of $0.17 per share in 2025.
The primary headwind for airline companies this year is volatile fuel prices.
“I don’t like where fuel is today,” Isom told the conference.
CFO Devon May put a number on it. Fuel has climbed roughly $1 a gallon for the fourth quarter alone, he said. Every penny is worth about $10 million in a quarter.
That’s why the loyalty program keeps coming up when management talks about upside. It’s a lever American controls, unlike jet fuel prices.
May said the company will update its fourth-quarter outlook on its next earnings call. For travelers, the news is simpler: Those leftover miles are about to become a lot more useful.
