American Airlines will let travelers mix cash and miles to pay for flights

American Airlines customers will soon be able to mix cash and airline miles to pay for flights.

The carrier announced the new policy in a memo to customers on Friday, explaining that it will soon offer travelers more flexibility in covering trip costs. U.S. members of American's AAdvantage loyalty program will be able to combine cash and miles to pay for domestic trips. 

Flights to and from Alaska and Hawaii are excluded from the offer, while American said it plans to expand the offering to more routes. 

American said it will roll out the feature in the coming weeks, without specifying when it plans to implement the policy. American billed the change as a way for customers to get more value from their memberships. 

AAdvantage members will be able to book flights using cash and miles on American's website or mobile app. Once logged in to their loyalty account, members will be instructed to choose their desired flights first. On the checkout screen, members' available cash and miles options will be shown. 

Customers will use an interactive slider to choose the combination of cash and miles to apply toward their purchase. American rivals Delta Air Lines and United Airlines already offer similar flexible payment options. 

American Airlines also announced this week a limited-time promotion aimed at expanding its market share, under which travelers with status on competing airlines are granted the equivalent status tier on American flights. To qualify, travelers must submit proof of their status with Delta SkyMiles, JetBlue TrueBlue or other reward programs. American will then issue an "Instant Status Pass," valid for four months. 

Airline ticket prices have jumped following the war in Iran, which has reduced global oil supplies and driven up jet fuel costs. Jet fuel accounts for up to 30% of carriers' operating costs. 

Airfares this holiday season are expected to reach a 10-year high, according to Hopper. The fare aggregator found that round-trip flight prices around Thanksgiving are already up 31% compared to last year.

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