Skip to content

Do Frequent Flyer Programs Make Money for Airlines?

Dec. 16, 2010

•

1 min read

Do Frequent Flyer Programs Make Money for Airlines?

The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

Daily Newsletter

Reward your inbox with the TPG Daily newsletter

Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

Absolutely! The airlines are raking it in with their frequent flyer programs. I just read the Delta Investor Day presentation (great reading for any airline dorks) and on slide 15 it shows a chart with ancillary revenue sources: Cargo: $900 million, Commercial Aviation Services $1.5 billion, SkyMiles $1.6 Billion, Unbundled Ticketing aka fees $2.1 billion.

Yes- Delta raked in $1.5 BILLION dollars last years from the SkyMiles program. They do this by selling gajillions of miles to partners, like their bestie American Express, who hawks SkyMiles like they are going out of style (like with this 45k bonus offer).

So when people make doomsday comments like "The frequent flyer game is coming to an end- it's too good to be true", I just chuckle Are you kidding me? The airlines are laughing their way to the bank. However, I don't feel bad, because I've learned how to maximize the value of my points and I'm laughing my way around the world in the first class cabin. Are you?
[card card-name='Citi® / AAdvantage® Platinum Select® MasterCard®' card-id='22144516' type='javascript' bullet-id='1']

TPG featured card

American Express® Gold Card

4 / 5

at American Express's secure site

Terms & restrictions apply. See rates & fees.

Rewards rate

4X	Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4X	Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3X	Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2X	Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1X	Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.

Intro offer

As High As 100,000 points. Find Out Your Offer.

Annual fee

$325

Regular APR

See Pay Over Time APR

Recommended credit

Excellent to Good

Pros

4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
3 points per dollar spent on flights booked directly with the airline or with amextravel.com
Packed with credits foodies will enjoy
Solid welcome bonus

Cons

Not as useful for those living outside the U.S.
Some may have trouble using Uber and other dining credits

You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
$84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
$100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
$120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
No Foreign Transaction Fees.
Annual Fee is $325.
Terms Apply.