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Air France KLM’s Genius Play: Drastically Cutting Business Class Reward Costs to Boost Profits

Jan 11 2024

Air France KLM’s Flying Blue was already the best loyalty program in SkyTeam (although some partisans might argue for Korean Air Skypass) and has made several improvements over the past couple of years – better expiration rules, the addition of free stopovers, lower redemption prices.

They seem to be one of the few rewards programs to have re-discovered that better programs are more profitable programs.

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Air France KLM Flying Blue On The Rise: Why It Will Continue To Outshine SkyMiles

Dec 22 2023

Air France KLM’s Flying Blue is the best frequent flyer program in the SkyTeam alliance. It’s legions better than Delta SkyMiles. At the airline’s investor day, they explained how they’ll be doubling down on the loyalty program to drive profits, as relayed by Brian Sumers in his invaluable Substack. U.S. airlines see loyalty programs as cash cows. That’s not as true elsewhere. In Europe and Australia, credit card interchange is regulated, so rewards card deals aren’t as lucrative. In Australia, we’ve seen Qantas make each point worth less in order to keep awarding around one point per dollar for credit card spend. (Card fees have gone up, and in some cases points-earning has been capped.) In Europe the cards themselves aren’t as profitable, and the deals look different. For instance a past Air France-American Express…

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How Some Lucky Flyers Bagged Business Class Tickets for Just 13,500 Miles – While Others Get Cancelled

Dec 18 2023

On Friday it was possible to book transatlantic business class award tickets on Air France for as little as 13,500 Flying Blue miles each way and in fact in some cases for just 1,500 points (!).

This was an error in pricing. Some people who booked it will get to travel, while others will have their plans cancelled.

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Air France KLM – Etihad Frequent Flyer Partnership Coming

inside airliner
Sep 07 2023

Air France KLM’s Flying Blue is already the best frequent flyer program in SkyTeam. And it’s relevant to Americans because every major points transfer program partners with Air France KLM, making their points easy to get, and there are even frequent transfer bonuses.

Their points are about to get more value since Air France KLM and Etihad have announced a new partnership.

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Air France KLM Will Mortgage Its Frequent Flyer Program For $1.5 Billion

air france
Aug 02 2023

Air France KLM insists Flying Blue won’t be spun off. CEO Ben Smith was President of Air Canada when their relationship with Aimia which ran the spun-off Aeroplan program went south, and the carrier laid out plans to bring the loyalty program back in house. While some analysts see spinning off loyalty programs as a way of ‘unlocking value’ in fact spinoffs create frictions which destroy value.

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