A new legal challenge to mileage expiration in Europe raises interesting arguments about fairness and frequent flyer programs.
Expiring miles remove liabilities from a balance sheet, letting an airline recognize revenue while confiscating what is often seen morally (if not legally) as an asset.
Program policies have varied tremendously over time — sometimes a loyalty program doesn’t want to lose a customer, other times they value revenue recognition, and we’ve seen a see-saw across programs over time and different approaches around the world.