Originally Posted by
RobertHanson
AA's last quarterly report stated that they are actually losing money on their aircraft operations, but making money on selling FF miles, mostly to banks I assume, but of course at least some to their FF members too.
I came across this yesterday.
“Frequent-flyer programmes are massively profitable for airlines. A carrier can charge credit-card companies far more for the miles or points they offer customers than it costs the airlines to redeem them.”
Airlines should think twice before devaluing their frequent-flyer points
https://www.economist.com/gulliver/2...t-flyer-points