Originally Posted by
3inthegreen
No airline made any money in 2024 moving people. It all came from the credit card programs.
Not true at all. United had $4.6B in adjusted pre-tax profit in 2024. Only $3.5B was "other operating revenue".
Of the $3.5B "other operating revenue" that is made up of
baggage fees, seat selection fees, in-flight entertainment, food and beverage sales, and other passenger-related services like United Club memberships, Revenue from the sale of frequent flyer miles to partners (e.g., credit card companies, hotels, or retailers) and other loyalty program-related activities. Fees for ground handling, maintenance, or other services provided to other airlines or entities at airports.
Even if half of that revenue is "credit card companies" United still did almost $3B in adjusted net profit in 2024. For "moving people".
Also that revenue comes at a cost, because it costs fuel, labor, administrative etc to transport those people around the system that converted their card point to miles for travel.
But keep saying it if it makes you feel better.
If the credit card revenue went away, those extra seats would just add to the current number of Basic Economy seats United would sell.