Before the pandemic American Airlines was losing money flying planes – the sale of frequent flyer miles accounted for its profit.
During the American Airlines first quarter earnings call Stifel analyst Joe DeNardi asked CEO Doug Parker whether he realized how profitable the AAdvantage program is, and why he doesn’t devote more time during the earnings call to discuss it?
He offered that “in 2019, your loyalty program generated roughly the same amount of EBITDA as Marriott did” and wondered “”why don’t you allocate 40% of the time on these calls to the loyalty program” given its importance?