
The Economics of Airlines’ Mileage Addiction
July 27th, 2009 admin
This short Business Week piece discusses the importance of frequent flyer miles to airlines — selling billions of dollars in miles, using miles to good moribund bookings and launch new routes — and includes a couple of interesting statistics. I’m sure I’ve mentioned in the past, though flying accounts for a plurality of mileage earning (base miles at least, not counting bonuses) it no longer accounts for a majority of mileage earning. Credit card spend represents about 20% of earned mileage.
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