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American Airlines Says Loyalty Program Drives Revenues and Margins

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American Airlines Says Loyalty Program Drives Revenues and Margins

American Airlines’ loyalty program, AAdvantage, differentiates the company from its rivals and provides a competitive advantage, executives said Thursday (Oct. 22) during a third-quarter earnings call.

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“We said we’d lead in loyalty, and we are,” American Airlines CEO Robert Isom said during the call. “AAdvantage enrollments and spending on our co-branded credit cards are up year over year, and the AAdvantage program remains one of our strongest competitive advantages.”

During the third quarter, the number of enrollments in the AAdvantage program increased 27.4% year over year, according to a Thursday press release.

American said in the release that its loyalty program drives customer engagement, premium demand and long-term value creation.

American Airlines Chief Commercial Officer Nat Pieper said during the call: “The AAdvantage program is a differentiator for American, and we plan to keep it that way.”

American announced Oct. 2 that it had begun rolling out a feature that lets eligible members of the AAdvantage loyalty program combine cash and miles when booking flights on its website and digital app, PYMNTS reported.

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The company said that as the feature goes live over a period of weeks, AAdvantage members will see during checkout a slider that allows them to choose a combination of cash and miles and then see the cost summary update to reflect that combination.


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