Nine Airline companies comprise a $30 billion club courtesy of co-branded credit cards

CarTrawler-sponsored research explores the jumbo economics of loyalty programs at Air Canada, Alaska, American, Delta, IAG, JetBlue, Qantas, Southwest, and United.

Co-branded credit cards deliver wheelbarrows of money for some airlines. The latest IdeaWorksCompany report explores how this has transformed frequent flyer programs (FFPs) and contemplates the effect upon customer loyalty. Many airlines have shifted from sole reliance on behavioural loyalty, which relies upon a customer’s expectations for service and quality. Carriers now embrace transactional loyalty which emphasizes exchange relationships where something is given and something is received. The report advises caution about over-reliance on the co-branding bounty and suggests focusing more on the overall customer experience.

Airline Loyalty Becomes a Billion Dollar Club was issued today as a 16-page report. It describes how airline FFPs generate revenue in the billions and provides abundant analysis and research on the business of co-branded credit cards:

 Delta Air Lines, with 7.5 million SkyMiles credit cards, saw payments from American 

Express jump by 24% to $6.8 billion for 2023.

 IAG (British Airways and Iberia), navigated Europe’s prevalent merchant fee 

restrictions and achieved outstanding Avios partner revenue of £1 billion.

 Southwest generated more than 22% of its 2023 total revenue from its Rapid 

Rewards program and Chase-issued credit card.

 Qantas achieved a revenue result of $96 per Frequent Flyer Program member with 

help from nearly 40 credit card options available to consumers in Australia.

Aileen McCormack, Chief Commercial Officer at CarTrawler commented on the report, “In today's aviation landscape, airlines are vying for price-conscious customers by providing greater rewards for their loyalty. The rise of ‘transactional loyalty’ - where passengers seek more incentives in exchange for their regular custom - has seen huge growth of frequent flyer programmes and co-branded credit cards, which have generated an incredible $30 billion in revenue for a selection of early adopting airlines. 

We understand that customers are seeking additional ways to spend their miles to gain value. This is why CarTrawler works with the world’s leading airlines to enhance their loyalty programmes by offering bespoke car rental earn & redeem functionality down to tier membership status and even fare class."

Airline-Loyalty-and-Co-Branding.

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 CarTrawler is the leading global B2B provider of car rental and mobility solutions to the travel industry. Recognised for its innovative technology solutions, CarTrawler is the partner of choice for the world’s leading travel brands, enabling them to offer car rental, airport transfer and ride-hailing services to their customers. CarTrawler’s purpose is to drive successful partnerships, by creating substantial ancillary revenue opportunities for the travel and airline industry.
IdeaWorksCompany boosts airline profits through innovations in ancillary revenue, a la carte pricing, loyalty marketing, and airline retail. The firm was founded in 1996 and has an international client list of airlines and other travel industry firms in Asia, Europe, the Middle East, and the Americas. IdeaWorksCompany enjoys a reputation as a global resource for ancillary revenue strategy, on-site executive workshops, and research reports.