Originally Posted by
FriendlyPilot
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.
United moved 105,829,000 passengers (mainline) in 2024
if you divide out their profit per passenger ticket sold it’s about $43.
Now solely on revenue excluding the “other operating revenue” etc it’s much lower at $10 per passenger ticket. So $33 per ticket profit is add ons. (Kinda seems like the ultimate ULCC)
buried somewhere in some filings is the amounts that chase and whoever else paid United but I don’t have time to find them. I’d guess it’s a lot more than 50%
people pay 200+ annually now just to hold one of the United cards.
Without the credit card mentality there would be a much different market.