Airlines earn revenue when credit card companies buy points or miles to issue branded cardholders. Airlines also earn revenue by selling loyalty points to other partners, like hotels, car rental companies, lifestyle brands, and retailers.

Yes, airlines in 2026 generate a massive portion of their total profit—sometimes more than from actual ticket sales—through their frequent flyer programs. The primary revenue engine is selling miles to partners, specifically banks like American Express, Chase, and Citi. These banks buy miles in bulk (often for less than 0.5 cents per mile) and then award them to customers for credit card spending. For the airline, this is a high-margin "cash-upfront" business that provides a steady stream of revenue regardless of how many people are actually flying. Airlines also profit through co-branded credit card interchange fees and commissions from sign-up bonuses. Additionally, they make money from "breakage"—points that expire or are never redeemed—and by charging "close-in" booking fees or "point-redemption taxes." In essence, modern major airlines like Delta and United have evolved into high-tech marketing and financial services companies that happen to operate airplanes to maintain the value of their internal digital currency.