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Title: Loyalty Programs Are Keeping America's Airlines Aloft

Link: https://news.slashdot.org/story/25/08/08/0738...

American airlines have transformed into financial services companies that
happen to fly planes as loyalty programs now constitute their primary profit
engine rather than passenger transport. Delta, American, Southwest, and
United all operated their passenger services at a loss in 2024 while
generating $14 billion in combined operating profits from credit card
partnerships. Delta received $2.1 billion from American Express in Q2 2025 --
exactly matching its total operating profit -- while the airline's passenger
operations alone would have posted a loss. These loyalty programs command
valuations in the tens of billions, sometimes exceeding the airlines' total
equity value, with Delta reporting 1% of U.S. GDP flows through its co-
branded cards. Customers can now reach American Airlines' top loyalty tier
without boarding a single flight.

Read more of this story at Slashdot.

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