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July
@july
1/n Do airlines make a lot from their rewards programs? if so, how much? I got curious (thanks @heavygweit & @jachian) about this and wanted to see. United as an example, (source: recent form 8-K and recent 10-Q forms) first some overview: Revenue: - United made $27.5B in the first 6 months of 2024: - Passenger airline operations revenue: $24.99B constitutes about 90.8% of their revenue - Cargo operations Revenue: $805M, ~2.9% of total revenue - Other revenue (including loyalty program earnings like MileagePlus and the credit card partnerships: $1.5B and about ~6.3% of total revenue Costs: - United paid $25.5B in the first 6 months of 2024: - Salaries and related costs $8.03B (31.5% of revenue) - Aircraft fuel: 6.09B (this seems to fluctuate the most obviously, 23.7% of total revenue) - Maintenance & repairs: $1.49B - D&A: $1.43B Operating Income: - $2.03B in the same time (27.5 - 25.5), total margin is about 7.4% - Passenger Profit: $2.5B - Cargo Profit: $805M - MileagePlus (Credit Card Program) $1.5B
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Wev 🐰🎩
@wevans247.eth
I did a 5-month round the world trip in 2013 with all but one flight paid for with Mileage Plus miles. Bonus: Had 2 Turkish Airlines flights in first class for no apparent reason. Me and this other guy (who also got bumped up) guessed that it was because we were both using miles and they had extra first class seats 🤷 I was booking all short-notice, one-way tickets and using miles was def the way to go in that situation. Austin to Oslo was 33k miles + $75. Barcelona to Kathmandu was a little more … but first class!
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