Story perspectives

Airlines Profit Billions from Loyalty Programs Amid Reform Efforts

9/7/2025

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Summary

Story summary

Frequent-flyer programs are crucial for airlines, generating significant profits and reducing losses.
These programs are valued at hundreds of billions globally, impacting major U.S. carriers like American Airlines, Delta, and United.
Credit card spending drives loyalty programs, with airlines partnering with banks for co-branded cards.
Critics aim to reform high fees, but efforts have seen limited success.
Airlines are diversifying loyalty offerings, collaborating with brands like Starbucks and Uber.
Delta's SkyMiles is valued at $28 billion, underscoring the financial importance of loyalty programs.
Many loyalty points remain unused, indicating growth potential.

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Story summary

Frequent-flyer programs are crucial for airlines, generating significant profits and reducing losses.
These programs are valued at hundreds of billions globally, impacting major U.S. carriers like American Airlines, Delta, and United.
Credit card spending drives loyalty programs, with airlines partnering with banks for co-branded cards.
Critics aim to reform high fees, but efforts have seen limited success.
Airlines are diversifying loyalty offerings, collaborating with brands like Starbucks and Uber.
Delta's SkyMiles is valued at $28 billion, underscoring the financial importance of loyalty programs.
Many loyalty points remain unused, indicating growth potential.