Read how airlines profit from air miles—but why sky-high valuations are not assured

 

The Economist 

American Airlines unveiled the world’s first frequent-flyer programme 40 years ago. The scheme is now worth more than the airline itself.

Last year analysts valued the programme at around $18bn-30bn, eclipsing the company’s current market capitalisation of $12.9bn.

Such schemes have proved a boon to American carriers in the pandemic.

For the first time, many are using them as collateral. Read how airlines profit from air miles—but why sky-high valuations are not assured https://econ.trib.al/cUFpSMB

Credit: Alamy