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You would think that an airline would be in the business of selling seats. Isn’t their whole purpose to transport people from point A to point B? As an industry whose primary service is moving people and stuff around the planet, you would assume airlines make the lion’s share of their profit from said service.
A recent article details how airlines actually make more money by selling frequent flier miles than they do by transporting people from point A to point B. For Delta and American, the estimated value of their loyalty programs is greater than their market cap. That’s sort of insane.
If you read the referenced article, I hope one line stood out to you: “Airlines are earning upwards of 50 percent of [income] from selling miles to a…