Sky-High Profits: how frequent flier programs turned airlines into banks

Brief Frequent flier programs have been an important part of the airline industry for many years, rewarding loyal customers with miles for their travel. However, these programs have changed a lot since they began, and airlines now make more money from deals with credit card companies than from selling tickets. Are airlines becoming more like banks? Overview In this episode of Down to Business English, Skip Montreux and Samantha Vega take a closer look at frequent flier programs and the surprising business model behind them. They explain how airlines earn billions from co-branded credit card partnerships and how this boosts their profits. Skip and Samantha also talk about the history of frequent flier programs, starting from the early 1980s and how they have turned into big money-makers for airlines today. Insights Skip and Samantha’s conversation is a great learning resource if you want to build your English listening comprehension skills and expand your business vocabulary. Key points of their discussion include: 🔸 How frequent flier programs now bring in more money than selling tickets. 🔸The importance of co-branded credit cards for airline profits. 🔸The history of frequent flier programs and how they've gone from rewarding miles flown to money spent. In Summary D2B 341 offers a clear look at how frequent flier programs have changed the airline industry and become a major source of income. This episode helps listeners understand how these programs work today and whether airlines are focusing more on financial deals than on flying passengers. It's a great episode for anyone interested in the connection between finance and travel.