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Old Apr 26, 2018 | 2:56 pm
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sbm12
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Originally Posted by wco81
But the throwaway point is that FF programs have better than 50% margins...
Not really, though. The volume of points sold at "list" price is spectacularly low compared to those sold to partners or distributed to passengers at lower rates. They have a high MSRP so they can constantly be on sale as a "great deal" without actually killing the margins.

The loyalty programs are definitely profitable to the airlines, but I don't think claiming a 50% margin across the board hold up.
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