Why some United fliers will suddenly earn less for the same flights

Core Points - United Airlines is overhauling its MileagePlus frequent-flier program, significantly reducing rewards for non-cardholders while enhancing benefits for cardholders [5][6][12] - Starting April 2, non-cardholders will earn 3 miles per dollar on travel, down from 5 miles, while cardholders will earn 6 miles per dollar [1][2] - The changes aim to incentivize loyalty through credit card ownership, with cardholders receiving up to four times more miles on travel booked with the airline [4][10] Summary by Sections Changes to MileagePlus Program - Non-cardholders will no longer earn miles on basic economy fares, marking a significant downgrade for frequent fliers without elite status [1][5] - Cardholders will receive additional benefits, including discounts on airfare and access to "Saver Award" seats for fewer miles in business class [3][4] Rationale Behind Changes - The changes are intended to highlight the value of being a cardholder and to reward those who engage more deeply with the airline [3][10] - United's strategy reflects a broader trend in the travel rewards space, where airlines are increasingly tying benefits to credit card ownership [11][14] Market Response - The announcement has led to negative sentiment among some frequent fliers, particularly those unable or unwilling to obtain a credit card [7][8] - United's stock fell nearly 6% following the announcement, indicating investor concerns about the potential backlash from customers [18] Competitive Landscape - United's changes follow similar moves by competitors Delta Air Lines and American Airlines, which have also reduced rewards for basic economy travel [13] - The airline is expanding its international credit card base, with new markets including Canada, the UK, and Brazil [9]