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American Air halves flier mile expiration

FORT WORTH, Texas, June 5 (UPI) -- Inactive American Airlines' frequent-flier miles will expire after 18 months instead of 36 months, the Texas-based airline said.

The change, which goes into effect Dec. 15, "will not impact you as long as you remain active in the AAdvantage program," American said in an e-mail to frequent-flier members.

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Customers do not need to book flights to keep their accounts active, an airline spokesman said. They can use affinity credit cards or do business with partner hotel chains and other companies that offer miles for using their services.

But "we know this kind of thing will incentivize people to be more active in the program," spokesman Bill Sanez told the Fort Worth (Texas) Star-Telegram.

The move will also help American, an AMR Corp. unit, shore up its balance sheet, said Tim Winship, publisher of the FrequentFlier.com Web site and co-author of "Mileage Pro, the Insider's Guide to Frequent Flier Programs."

The airline must account for unused miles, and last year it reported future liabilities related to unused miles totaled $1.6 billion, Winship said.

Eliminating miles in inactive accounts will reduce that number, he said.

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American follows other carriers, including UAL Corp.'s United Airlines and US Airways Group Inc., that announced similar moves this year.

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