Originally Posted by
FlightNurse
Airlines are in the business of making money, why should they fill the plane up with freeloaders? how are they making money that way
Originally Posted by
chinatown
issued frequent flier miles are a liability on an airlines ledger. by allowing tickets to be redeemed, they reduce their liabilities.
As an accountant and a Flyertalker:
1) The future service obligation in redemption miles - in the form of providing a reward seat or reimbursing a partner airline to do so - is relatively a low % of the revenue of selling miles to finance partners
Increase in required mileage for ANA international and flight partner award tickets
2) Majority of revenue from finance partners is marketing profit when finance partner customers redeem their points for redemption miles
ACCOUNT CANCELED, 360K miles loss!!!