How Much Does It Cost An Airline To Produce A Frequent Flyer Mile?

Jan 07 2023

When laying out the reasons why American Airlines devaluing AAdvantage program could be bad for its business I noted financial disclosures they made to investors when raising debt backed by their loyalty program.

Taking their self-reported 52% operating margin for the program, I backed into what it cost for American Airlines to ‘produce’ a frequent flyer mile.

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