The CARES Act saved many airlines from bankruptcy. With funding ending, however, American Airlines may cut service at up to 30 smaller cities, according to a new report. Here’s what you need to know about the potential service reductions, and how they may impact current AAdvantage credit cardholders.
Report: American Airlines Cutting Services
Major airlines received billions in bailout funding courtesy of the CARES Act earlier this year. The Act, which also provided stimulus checks to millions of Americans, set the stipulation that airlines must maintain their services to all U.S. airports they previously operated at through September 2020.
With CARES Act funding ending by the start of October, CNBC is reporting that American Airlines will cut services to 30 small- and medium-sized cities as early as this fall. The CNBC report comes from an American Airlines executive, who requested their name withheld. The executive also noted that the list of cities losing American routes is not finalized.
Will Service Reductions Hurt AAdvantage Credit Cardholders?
Any reduction in American Airlines routes will be bad news for current AAdvantage credit cardholders. The AAdvantage frequent flyer program is the loyalty service of American Airlines. AAdvantage is by far the most extensive frequent flyer program in the world, with over 100 million members as of 2020.
Since a reduction in services to small- and mid-sized markets would limit the ability of many AAdvantage cardholders to fly with American, this move may have an impact on American Airlines’ finances in ways yet unseen.
Current AAdvantage credit cards include:
- AAdvantage® Aviator® Red World Elite Mastercard®
- AAdvantage® Aviator® Business Mastercard®
- Citi® AAdvantage® Executive World Elite™ Mastercard®
- CitiBusiness® / AAdvantage® Platinum Select® Mastercard®
- American Airlines AAdvantage® MileUp Mastercard®
- Citi® AAdvantage® Platinum Select® World Elite™ Mastercard®
Will Other Airlines Slash Services?
While American is the first U.S. carrier to hint at route cancellations, it likely won’t be the last. Delta Air Lines has yet to comment on any potential route cuts, while United Airlines is ruling out cuts to its current services at this time.
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