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Old 05-03-2024, 05:44 AM
  #51  
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Originally Posted by Ordie17
Something like in the low 50% range of their revenue is from AmEx, Cargo ops and their Maintenance shop.
Just thinking out loud, but when did the credit card revenue start to become such huge percentage of revenue to the point of sustaining the airline? Post-pandemic? Or was this the result of the consolidation creating the Big 3 and driving everyone into alliance programs which then leads to getting the credit card?
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Old 05-03-2024, 06:53 AM
  #52  
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Originally Posted by Flyby1206
Just thinking out loud, but when did the credit card revenue start to become such huge percentage of revenue to the point of sustaining the airline? Post-pandemic? Or was this the result of the consolidation creating the Big 3 and driving everyone into alliance programs which then leads to getting the credit card?
How airlines became banks
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Old 05-03-2024, 07:15 AM
  #53  
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Originally Posted by I was inverted
That was a good video, sounds like this has been going on since deregulation but we just got more clarity into the valuations during the pandemic. It sounds like a perfect scheme for airlines to make money at this point.

It also explains why business travel is so critical. They will happily pay the highest price so the employee travelling can get lots of points, and they stay within their frequent flier programs because of this. Now that most programs are tied to dollars spend for point accrual I suspect this trend will accelerate. Heck, Lets start auctioning off premium seats and see how much a business traveller will pay.
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Old 05-03-2024, 12:30 PM
  #54  
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Originally Posted by Flyby1206
That was a good video, sounds like this has been going on since deregulation but we just got more clarity into the valuations during the pandemic. It sounds like a perfect scheme for airlines to make money at this point.

It also explains why business travel is so critical. They will happily pay the highest price so the employee travelling can get lots of points, and they stay within their frequent flier programs because of this. Now that most programs are tied to dollars spend for point accrual I suspect this trend will accelerate. Heck, Lets start auctioning off premium seats and see how much a business traveller will pay.
The rumors seem to suggest that we are going after that market so that we can grow our own loyalty program.
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Old 05-03-2024, 03:13 PM
  #55  
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Originally Posted by ProPilotBlue
Delta is profitable because it makes $6.8 billion a year from their credit card. They posted a $4.6 billion profit in 2023. You do the math. They would not be profitable without their credit card and loyalty program. Crazy right?
But the CC spend and FF loyalty is based largely on network and RELIABILITY.

It still largely comes back to running a high quality operation most of the time. With a more reliable operation they can charge higher fares (revenue premium) and gain a larger share of loyalty and CC spend (credit card revenue).
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Old 05-03-2024, 08:37 PM
  #56  
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thought this was an interesting piece:

https://www.mckinsey.com/industries/...table-airlines
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Old 05-04-2024, 10:56 AM
  #57  
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Originally Posted by Bluedriver
But the CC spend and FF loyalty is based largely on network and RELIABILITY.

It still largely comes back to running a high quality operation most of the time. With a more reliable operation they can charge higher fares (revenue premium) and gain a larger share of loyalty and CC spend (credit card revenue).
Which is why we have seen the retrench into our strongholds. Frequency is important.

From here on out we can not open a new station unless we are going in with 3 flights a day to JFK,BOS and FLL. No more of this 1 flight and build a market over time BS. Even if that means only opening one new station a year accounting for the entire years aircraft deliveries.
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Old 05-04-2024, 12:16 PM
  #58  
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Originally Posted by RiddleEagle18
Which is why we have seen the retrench into our strongholds. Frequency is important.

From here on out we can not open a new station unless we are going in with 3 flights a day to JFK,BOS and FLL. No more of this 1 flight and build a market over time BS. Even if that means only opening one new station a year accounting for the entire years aircraft deliveries.
Except nobody is going to buy a JetBlue ticket from Phoenix to New Orleans if they have to fly up to JFK or BOS to get there. Even with three flights a day.

We may fly to 100% of the Caribbean, but we only fly to 20% of the United States. Maybe we need to buy Banco Popular and use them to become a financial powerhouse.
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Old 05-04-2024, 02:05 PM
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Originally Posted by RiddleEagle18
Which is why we have seen the retrench into our strongholds. Frequency is important.

From here on out we can not open a new station unless we are going in with 3 flights a day to JFK,BOS and FLL. No more of this 1 flight and build a market over time BS. Even if that means only opening one new station a year accounting for the entire years aircraft deliveries.
This is also why I now see how adding bases like BDL/DCA/TPA makes sense. It opens more options for expanding service. Something like ORD could see additional service, and not rely on just BOS/JFK/FLL for O&D options.
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Old 05-04-2024, 02:16 PM
  #60  
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Originally Posted by Flyby1206
This is also why I now see how adding bases like BDL/DCA/TPA makes sense. It opens more options for expanding service. Something like ORD could see additional service, and not rely on just BOS/JFK/FLL for O&D options.
Do you think if this were the case they would be included in the system bid? It seems like the only new base they are entertaining is SJU.
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