Skift Take
Airlines don’t release much data on their massively profitable loyalty programs. But scrutiny from the government and consumers have led some to wonder, are these programs worth it?
Loyalty is big business for airlines. In 2023, American Airlines raked in around $6.5 billion from AAdvantage alone — that included revenue earned from mileage redemptions with credit cards and marketing the program. Delta Air Lines reported deferred revenues of $8.4 billion from its SkyMiles program, and United Airlines had about $7.1 billion in deferred revenue from MileagePlus.
Besides revenue from tickets — actually flying people places — loyalty programs are one of the most significant revenue streams for an airline. These programs are so critical that some executives refer to them as a “north star.” United calls MileagePlus its “crown jewel.” At American’s investor day in March, CEO Robert Isom said around 65% of its revenue was driven by AAdvantage members.
But now these cash cows have been under attack from all corners.
As airlines raise spending requirements to earn status, some passengers have begun to questi
Photo Caption: Illustration by Skift
