How Frequent Flyer Programs Can Offer Some Relief to Struggling Airlines

U.S. airlines have confirmed during the past three days what seemed impossible a few weeks ago — that this is probably the worst period in U.S. aviation history, likely more disruptive than the months after 9/11. Almost no one is traveling, and few people are buying airline tickets. As in previous crises, U.S. carriers are looking everywhere for liquidity, including mortgaging airplanes and engines. But, at least through Monday morning, they had not gone to one of their favorite places — their frequent flyer programs. It's an open secret that, at big airlines, loyalty programs are the crown jewel, an asset that generates billions of dollars per year during boom times. Airlines in recent years have treated loyalty programs as the secret sauce, not giving investors much information about how they operate or what margins they produce. But some suspect the programs may throw off more cash than the core airline. When airlines do release numbers, they can be eye-popping. After D