Originally Posted by
d00t
^^ Correct!
Selling miles is actually creating more liability. It's not directly profitable per se, aside from a small marketing component.
Redemption is revenue recognition under IFRS 15, and that is where the profit is generated. The miles being redeemed may have been generated from the banks and while that process is critically important, it's not how profits are booked
Additionally, "Delta expects to earn $ 4 billion in revenue from their Amex partnership in 2021", does not mean $4B directly from the co-brand card. There are multiple revenue streams buried within co-brand card economics.
Exactly. By the way, interesting blog. I've subscribed to your newsletter yesterday. And, perhaps unsurprisingly, we seem to have a few linkedin contacts in common.
