Originally Posted by
Magna
Why do many of these programs have points expiration? I would think the whole reason these corporations set up these marketing loyalty programs is to entice you to keep coming back,
If you haven't spent a penny in two years, I think that ship has sailed....
Yes, "liability" is an
accounting debit on the balance sheet.
The obligation to provide free or reduced-fare travel to passengers who redeem their accrued frequent flyer program (FFP) benefits represents a significant liability on every major U.S. airline’s balance sheet.
AA had a $2.45 billion liability as of 2015.
Yes, the airline has assets (the cash from selling the ticket that accrued the miles), but that doesn't make the liability disappear. If you paid AA $100 and they gave you a $100 AA gift card, there would be a $100 asset and $100 liability on the balance sheet.