Interesting Article on Airlines

Wild Turkey

Wild Turkey

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The interesting part was that airlines don't make much money on actual flights because of how capital-intensive the business is but rather make money on bag fees, ticket change fees and most importantly selling credit card miles. For example, Delta made 3.6 billion last year but had 5.7 billion from selling credit card miles. Without the credit card miles Delta would have lost 2.1 billion.
 
Credit Card miles?!?!?

GIF by CheekysBrand


We have folks here that get them on the regular..........
 
Bayou Tiger said:
Credit Card miles?!?!?

GIF by CheekysBrand


We have folks here that get them on the regular..........
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I do, and the article explains everything that everybody here has been trying to explain to you.

They're making their money off of those who don't pay their balance every month. Derp
 
Red_Alert said:
I do, and the article explains everything that everybody here has been trying to explain to you.

They're making their money off of those who don't pay their balance every month. Derp
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The credit card companies are but I guess the airlines are making money from the credit card companies through redemptions of points. Had no idea it was 5.7 billion pickup for Delta.

I’ve got a Capital One Travel card that I build up points on and I have it for 3 reasons:

1. Gives me access to network of airport lounges which I never valued that much until air travel got to be such a shit show and now it is critical for mental heath.
2. No international exchange charges which more than pay for the $100 yearly fee.
3. I use the points for our annual trip so typically get airline tickets paid through just those.

They aren’t making interest off me though but a killing on transaction fees. I’ve pay everything by credit card that doesn’t charge me a fee to do it. I probably earn 20K in referral points a year as well.
 
Bayou Tiger said:
Ahhh, those OTHER guys are responsible!


Uh Huh Lol GIF by Power
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If you can't comprehend the simplicity in this, you're beyond help. It's been explained to you multiple times.

"Who pays for all those rewards anyway?

Since many people don’t pay off their credit card balance each month, these card companies make billions of dollars charging people interest.
Credit card companies also charge merchants roughly 2.5% every time a customer swipes a reward card — what’s known as the interchange fee."
 
Bayou Tiger said:
Instead, they make their profits from bag fees, ticket change fees and — importantly — frequent flyer programs.


Derp indeed!
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Everybody that flies pays the bold, dipshit.

Regarding 'Frequent Flyer' programs, I'm retired and am no longer a frequent flyer. When I was my company always paid that.

Same for hotels. I use a Marriott card and would accumulate points for every stay. My company reimbursed me for the stay when I filed my travel voucher, but I got to keep the points.
 
"Credit card companies also charge merchants roughly 2.5% every time a customer swipes a reward card — what’s known as the interchange fee."

My local small town gas station won't let you use a credit card on purchases less than $3 for that very reason.
 
Shocking the amount of posts with such a terrible thread
 
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