Having a lifetime first-class ticket sounds like a dream come true for any frequent flyer. But for one American Airlines passenger, what seemed like a great deal turned into a nightmare for the airline— costing them a staggering $21 million. Here’s the crazy story of how a $250,000 investment led to a major financial blunder for American Airlines.
In 1981, American Airlines introduced a bold offer: anyone willing to fork out $250,000 upfront would receive unlimited first-class flights for life. The airline was looking for a way to boost revenue during tough financial times, and the AAirpass program was born. The idea was simple: offer an all-you-can-fly ticket to a select group of people who’d be willing to pay a hefty sum.
Initially, the plan worked. A total of 66 people bought into the AAirpass, each with unlimited access to luxurious first-class cabins. But while the program seemed successful, it quickly became clear that it had a major flaw—especially after Steven Rothstein got his hands on one in 1987.
Rothstein, a stockbroker, took advantage of this lifetime pass with a vengeance. In the 21 years that followed, he flew an astounding 30 million miles across 10,000 flights. By 2008, his free flights alone cost the airline over $21 million, more than eighty times the price he had paid for the ticket.
American Airlines, realizing the damage Rothstein was causing, decided to cancel his AAirpass in 2008, leaving him stranded mid-journey in Bosnia. But Rothstein’s story didn’t end there. The airline also accused him of fraud, claiming that he had booked flights under fake names and even given away his passes to others. Rothstein admitted to sharing his ticket with those in need, offering flights to people attending funerals or visiting sick relatives.
Despite the allegations, the two parties eventually settled out of court. Rothstein still maintains that he didn’t see his actions as fraud, but as acts of kindness. Today, he prefers flying with United Airlines, but the legendary AAirpass saga remains a cautionary tale of how a seemingly sweet deal can go terribly wrong.
