For passengers, loyalty programs are the reward for frequent flying, with status benefits and thousands of miles to be collected. However, for airlines, mileage programs are big businesses worth billions, tied into flying, credit cards, and much more. A report from On Point Loyalty detailed the most valuable programs in the world, which we’ll take a look at today.
The US dominates
When it comes to the biggest programs, the US big three are the largest, by and far. So much so that their combined value of $73.8 billion is more than the next fifteen carriers on the list put together. Delta’s SkyMiles leads the pack, with a valuation of $27.3 billion in 2023, per On Point. American’s AAdvantage comes in second at $23.9 billion, followed by United’s MileagePlus at $22 billion.
The value of these programs was thrust into the limelight in 2020, as airlines used their loyalty arms as the basis for multi-billion dollar loans to survive the pandemic. It quickly became clear that miles are what drive airline profitability and allow them to essentially create and value currency at will, selling them for any price they wish. Indeed, the value of the miles programs outvalues the market cap of all three airlines.
Fourth on the list is Southwest’s Rapid Rewards, which is valued at a more tepid $8.8 billion compared to its competitors. The difference reflects the carrier’s business model of single-class budget flying, and it is the only low-cost carrier in the top 20.
Learn more about the loyalty programs and their value on Paul Thomas’ newest episode of Let’s Talk Loyalty, available on the player below!
Europe and East Asia
Further down the list, things get a lot more competitive. Lufthansa Group’s Miles and More program is worth $7.9 billion, benefiting from the presence of 10 carriers in the scheme. IAG’s Avios program, which includes British Airways, Iberia, Aer Lingus, Qatar Airways, and more, is sixth and worth just over $7 billion. It’s clear that Europe’s airline consolidation has helped these programs offer more benefits and create the scale needed to succeed.
Air Canada’s Aeroplan takes the list back to North America, worth $6.8bn. However, from there, Asia and Oceania interrupt the party. Korean Air’s SkyPass is the ninth most valuable program in the world at $4.6bn, followed by Cathay Pacific in 10th at $4.55bn.
Notably, Cathay is the only airline of the top 10 to see its valuation fall since 2020, a clear reflection of Hong Kong’s prolonger travel restrictions hurting the airline. Singapore Airlines’ KrisFlyer is 11th with $4.5bn in value, falling from $5bn in 2020. Both airlines are looking to regain their place this year as the world fully reopens for international travel, hurt by the lack of domestic markets through the last three years.
Rounding off
Alaska’s Mileage Plan is 12th while Qantas comes in at 13th, worth $4.4bn and $4.2bn, respectively. China Eastern’s program ranks 14th at $4.1bn, while JetBlue rounds out the top 15 with a value of $3.9bn. From there, LATAM is 19th and is the only South American or African carrier to break into the top 20.
Source: simpleflying.com