Just saw an analyst on MSNBC tout AA. He upgraded it to a Buy with a $95 price target which is over double what it is currently.
He said the market doesn't appreciate how lucrative a "marketing" business within the airline it has of selling miles to Citi and Barclays.
He values the Loyalty Program at $78 and the airline operations at $17 a share. Says the FF program has $2.5 billion in revenues per year, growing at 10% a year with 65-70% margins.
So I know it's easy to get miles from credit cards but there must be enough redemptions from those to keep moving those credit card deals?