True. Now let's go to the reason this is right with regard to Delta. The value of miles has a very different analysis. For Delta, it is directly associated with the value of the redemption and the reason awards are constantly being made more expensive and harder to buy.

Major U.S. airlines employ one of two methods to account for the liabilities they incur when issuing mileage credits to traveling passengers. The Deferred Revenue Method recognizes a liability for the fair value of the outstanding mileage credits (with “fair value” defined under International Financial Reporting Standards (IFRS) as “the amount for which the award credits could be sold separately”). The Incremental Cost Method recognizes a liability for the marginal cost of providing air transportation to eligible award passengers (i.e. the cost of taxes, fuel, food, etc. to fly one additional passenger on a seat that otherwise would have been empty—generally a nominal amount).

Delta Air Lines chose to revalue its FFP under the Deferred Revenue Method following its Chapter 11 reorganization and subsequent fresh start accounting. So did United.

Only Delta and United use the FFP, and only these two will benefit on their balance sheet from a devaluation of the fair value of the redemption of the credits. Hence, from an accounting point of view, only United will be tempted to follow Delta.