Frequent Flyer Programs Earn Billions of Dollars for five Airlines

[futaris]

http://www.flyertalk.com/the-gate/b...rn-billions-of-dollars-for-five-airlines.html

Not surprising Qantas frequent flyer is in that list.

 

[serfty]

Five Frequent Flier Programs Accrue Revenue of $7 Billion

http://www.ideaworkscompany.com/news/

http://www.ideaworkscompany.com/press/2011/2011LoyaltybytheBillions-report.pdf

Loyalty by the Billions

IdeaWorks analyzes how frequent flier programs pour cash into airline coffers.
​

Thirty years ago the chairman of a leading European-based airline declared his disgust for frequent flier programs. He called them an “American disease” that would hold no allure for the more sophisticated Europe-based traveler. History has proven the folly of this belief. Europe now boasts more frequent flier programs than the number offered by USbased airlines, and the FFP phenomenon has spread worldwide. Beliefs are sometimes hard to dispel, and too many airline executives still think frequent flier programs are ruinous for
the bottom line. It’s impossible for critics to ignore the $7 billion accrued in 2010 by the programs associated with five global airlines. IdeaWorks offers this report as a rebuttal to anyone who says, “Frequent flier programs cost too much money.”

American Airlines is credited with introducing the first frequent flier program in 1981.1 This invited an almost immediate response by United Airlines and Delta Air Lines, both of which quickly introduced competing programs. The rest of the world took a bit longer. For example, KLM’s program began in 19912 and programs for Lufthansa3 and Japan Airlines4 followed later in 1993. Today, airlines all over the world ...
...

Frequent Flier Programs -- Revenue Disclosed or Estimated [USD]
Airline	Annual Revenue	Revenue/Member	Revenue/Passenger
United Continental	$3,000,000,000	$32.97	$20.59
Delta Air Lines	$1,600,000,000	$19.51	$9.84
American (estimated)	$1,368,000,000	$20.42	$13.01
Qantas Group	$1,141,240,000	$158.51	$27.55
TAM	$505,764,144	$63.22	$14.64
Alaska	$372,800,000	$120.26	$15.98
Iberia	$23,430,000	$5.86	$0.93
Revenue disclosed by airlines in financial filings during 2010; may comprise exclusively co-branded credit activity or may include other partner activity. Membership totals found in annual reports or published sources. American Airlines estimate based upon disclosure of miles sold multiplied by assumed average price of 1.2 cents/mile.

 

[cove]

Re: Five Frequent Flier Programs Accrue Revenue of $7 Billion

OK so that's where I put that $40,000!
But who else put in the bigger amount of loose change into Qantas points in 2010??
Anyway I think QF do pony up some pretty good seats for frequent flyers.

 

[missafternoondelight]

Re: Five Frequent Flier Programs Accrue Revenue of $7 Billion

Very interesting article. Thanks for that, Serfty.

 

[JohnK]

Surprising that 4 of the top 5 are airlines from the USA.