US airline loyalty programs can provide buffer from possible recession MarketScreener

CHICAGO (Reuters) – U.S. airlines relied on loyalty programs for revenue during the pandemic, and industry executives and experts said income from them should hold up if the economy slips into a recession. Launched more than four decades ago to build airline brand loyalty, the programs have become a cash-generator for carriers through sale of miles to third-party partners, mostly credit card-issuing banks that award the miles to their own customers. The more customers spend, the more miles they earn and the more partners pay to airlines. Non-flying activities now account for more than half of all miles earned in…