Creditnet News Story
Airlines offering more bonus miles
Wednesday, August 11, 2010
By Thomas Astery
Many consumers who are interested in acquiring frequent flyer miles may have noticed an increase in the amount of bonus miles airlines are offering these days.
According to a recent report in the New York Times, airlines have rolled out a great deal of new offers for bonus miles in conjunction with branded credit cards because consumers have come to expect them.
One of the largest generators of revenue for airlines is the sale of miles to credit card companies, who then offer them as bonuses to consumers who open new accounts, creating a symbiotic relationship between lender and carrier. The report said these cards also offer other bonuses for consumers that carry them, including preferred boarding privileges and free bag checking - which can otherwise be a rather large expense for someone flying with any additional luggage.
The plans seem to be working though, as almost all major airlines in the U.S. posted large profits. According to USA Today, this movement was led by Delta, which reported that the second quarter of the year was its best in over a decade.
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