Business Engine ep07: Why Airline Miles Were Priced Higher Than the Airline ✈️
Why airline loyalty programs were valued higher than the airlines themselves in 2020.
Last checked 2026-10-18 on the official pages.
Premieres 19 Oct 2026, 17:00 CEST (Europe/Copenhagen) ↗
Companies in this episode
- United Airlines Holdings · Airlines
- Delta Air Lines · Airlines
- American Airlines Group · Airlines
- American Express · Financial services
Evidence used
Delta reports remuneration from its American Express partnership. verified
In 2024, remuneration from American Express totaled $7.4 billion
Delta reported resilient cash sales to American Express during the pandemic. verified
cash received from sales to American Express declined by less than 5% year over year to $1.9 billion
Delta reports remuneration from its American Express partnership. verified
In 2024, remuneration from American Express totaled $7.4 billion
United presented its own MileagePlus valuation using an EBITDA multiple. verified
Multiplying MPH 2019 EBITDA by a factor of 12 equates to a MileagePlus valuation of approximately $21.9 billion.
- C-19 — channel evidence reference; source mapping pending.
- C-20 — channel evidence reference; source mapping pending.
- C-24 — channel evidence reference; source mapping pending.
- C-25 — channel evidence reference; source mapping pending.
- C-29 — channel evidence reference; source mapping pending.
Company filing evidence provides additional context:
United Airlines Holdings
United’s loyalty program connects airline customers with purchases from non-airline partners. verified
Members can also earn miles by purchasing goods and services from our network of non-airline partners, such as domestic and international credit card issuers, retail merchants, hotels and car rental companies.
United presented its own MileagePlus valuation using an EBITDA multiple. verified
Multiplying MPH 2019 EBITDA by a factor of 12 equates to a MileagePlus valuation of approximately $21.9 billion.
The proposed financing involved contributing program brands and member data. verified
United and MPH will contribute to MIPA their respective rights to certain MileagePlus intellectual property, including brands and member data.
Delta Air Lines
Delta sells loyalty miles to partners whose customers earn rewards through everyday spending. verified
Customers earn miles based on their spending with participating companies such as credit card, retail, ridesharing, car rental and hotel companies with which we have marketing agreements to sell miles.
Delta reported resilient cash sales to American Express during the pandemic. verified
cash received from sales to American Express declined by less than 5% year over year to $1.9 billion
Delta reports remuneration from its American Express partnership. verified
In 2024, remuneration from American Express totaled $7.4 billion
American Airlines Group
American’s sales of loyalty miles to partners combine transportation and marketing revenue. verified
Sales of mileage credits to co-branded credit card and non-airline business partners are comprised of two revenue elements: a transportation component and a marketing component.
The loyalty financing structure granted American a royalty-bearing sublicense to use the transferred program intellectual property. verified
HoldCo2 has in turn granted to American an exclusive, irrevocable (subject to certain termination rights), perpetual, worldwide, royalty-bearing sublicense to use the Transferred AAdvantage IP
American Express
American Express earns discount revenue by facilitating spending between card members and merchants. verified
Discount revenue — Primarily represents the amount we earn and retain from the merchant payable for facilitating transactions between Card Members and merchants on payment products issued by American Express.
Delta reports remuneration from its American Express partnership. verified
In 2024, remuneration from American Express totaled $7.4 billion
Frequently asked questions
What does this episode cover?
Why airline loyalty programs were valued higher than the airlines themselves in 2020.