Why Airlines Can’t Survive Without Loyalty Programs

American Airlines created the first major airline loyalty program in 1981 as a way to compete for customers post-deregulation.

But today these programs are the industry norm, having transformed into billions of dollar businesses with legs outside the aviation industry.

The AAdvantage loyalty program has even become a business in its own right with airlines selling miles to banks, and was followed by similar programs with United, Delta, Southwest and more.

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